Truth Social is going public, boosting Trump's net worth by billions days ahead of $454 million deadline in NY
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Former President Donald Trump is set to reap billions from his stake in Truth Social.
After significant delays, a blank-check company approved a merger with Truth Social's parent company.
As soon as Monday, the company could be relisted to allow public trading using Trump's initials.
Former President Donald Trump's Truth Social is set to become part of a publicly traded company after a long-delayed merger was approved.
On Friday, a shell company created solely to buy Truth Social's parent company, Trump Media & Technology Group, approved the merger, The New York Times reported.
Trump's net worth is set to jump more than $3 billion from the deal, based on his large stake in the social-media platform he helped create in the wake of his post-January 6, 2021, Capitol-riot bans on mainstream platforms.
But Trump won't be able to sell his shares for at least six months unless the company's board waives a previous lockup agreement. There are also lawsuits between shareholders that could complicate the company's future.
If Trump wants to access his money sooner, it may not be a problem. The Washington Post pointed out the board would be stacked with Trump's allies. Former congressman Devin Nunes, who was already the CEO of Truth Social's parent company, is set to become the CEO of the combined companies. Donald Trump Jr., Trump's eldest son, also plans to be on the board. The former Trump Cabinet officials Robert Lighthizer, who served as Trump's US trade representative, and Linda McMahon, who served as the administrator of the Small Business Administration, are also set to be on the board.
As soon as Monday, the new company could be relisted on the Nasdaq under the symbol DJT, the former president's initials.
The prospective windfall comes at a critical time for Trump. The former president faces mounting costs from his legal fees and fallout from other cases. By Monday, the former president must post an appeal bond covering the more than $456 million he owes New York state from a civil fraud judgment that Trump wants to continue to fight.
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