In a landmark move hailed by investors, Digital World Acquisition Corp. shareholders have overwhelmingly voted in favor of merging with Donald Trump's social media company. The merger, which could see the former Republican president pocketing a staggering $3 billion or more, marks a significant milestone in Trump's foray into the digital realm.
The decision by DWAC shareholders comes after 2½ years of anticipation since the special purpose acquisition company initially announced plans to merge with Trump Media & Technology Group, the entity behind the Truth Social app platform.
As Trump inches closer to realizing his vision for a social media empire, he faces mounting legal challenges, including a $454 million civil fraud judgment brought by New York Attorney General Letitia James. Despite these hurdles, Trump remains resolute in his pursuit of digital dominance.
The newly combined company, Trump Media, is poised to begin trading publicly under the stock symbol DJT, bearing Trump's initials, evoking memories of his previous ventures under the same ticker symbol.
While DWAC's share price initially experienced a slight dip following Friday's shareholder vote, market analysts remain optimistic about the future prospects of Trump Media. Notably, 11% of DWAC's tradable shares are sold short, indicating a speculative bet on the decline of the share price.
Although the merger's terms have sparked legal disputes, including lawsuits challenging the allocation of shares, the deal remains on track, signaling a potential windfall for Trump. With nearly 80 million shares in the merged company, Trump's stake could be worth upwards of $3 billion, subject to market fluctuations.
However, realizing this substantial sum hinges on several factors, including the maintenance of DWAC's pre-merger share price and the duration of the share lockup period, which bars Trump from selling shares for at least six months.
Despite these constraints, Trump's allies, including his son Donald Trump Jr. and former trade representative Robert Lighthizer, are poised to play pivotal roles in Trump Media's board of directors, potentially paving the way for an early share sell-off.
Amid ongoing legal battles and financial constraints, Trump remains undeterred, asserting in a Truth Social post that he possesses nearly $500 million in cash. As he navigates the complex landscape of media and politics, Trump's strategic maneuvers continue to captivate investors and pundits, heralding a new era in digital communication under his leadership.