Donald Trump's media company is set to make its debut on the stock market Tuesday, a development that could generate a windfall for the cash-strapped former president. His stake in the firm — Trump Media and Technology Group, the parent company of Truth Social — is worth billions.
was founded in 2021 as a special purpose acquisition company, or SPAC. This kind of firm raises money before deciding on a company to acquire, which is why they're also commonly referred to as a 'blank check company.' hit the public markets, raised a bunch of money and then announced plans to acquire Trump Media and Technology Group, the formerly private firm that owns his social media platform, Truth Social. That announcement happened in 2021, but faced delays from legal holdups and investigations, including fraud/insider trading charges from the Securities and Exchange Commission.
’s opening share price Friday, that could value his stake at more than $3 billion. shares, which fell Friday but then surged again Monday, have more than doubled this year but are still way off their 2022 high points. Its volatility provoked criticism that it's a 'meme stock' driven by a fan following, rather than business or market fundamentals. Trump Media has lost millions while posting under $3.5 million in revenue during the first nine months of 2023, according to the most recent information available. Can Trump sell his stock instantly? No.
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