Former President Donald Trump’s new media enterprise – Trump Media & Technology Group – is already worth an implied $8.2 billion following last week’s buying frenzy following the announcement of its special purpose acquisition company (SPAC), Digital World Acquisition Corp. (ticker: DWAC). Take a look at the above first few days stock price of DWAC … it’s on a meteoric rise and could go higher.
Truth Social is a proposed social media platform to be launched by Trump Media & Technology Group (TMTG). It is planned to have a limited launch on Apple‘s App Store in November 2021, and a full public launch in 2022.
And according to Bloomberg, citing SEC filings, it appears that Trump will own more than 50% of the combined company. Assuming that the company’s initial enterprise value was $875 million (based on figures from press releases) was calculated at $10 per share offering price and the $293 million Digital World has in trust, owners of the SPAC will receive around 42% of the combined company, leaving 58% for Trump – a stake worth nearly $4.8 billion based on Friday’s close. For reference, Twitter is worth nearly $50 billion.
“At its current value, that would make him the richest he’s ever been, up from his estimated net worth now of $2.5 billion, according to the Bloomberg Billionaires Index,” according to the report.
The on-paper gains, should they hold, more than make up for the $500 million hits Trump took to his net worth since becoming President according to the report.
Of course, Bloomberg points out that Trump’s new venture faces significant headwinds.
There are many reasons to be skeptical of the valuation. It will be months before the new venture publicly releases its first product, a social-media platform called Truth Social. And there are already technical issues. On Thursday, the Truth Social page was hacked to make it appear that Trump shared a photo of a defecating pig.
It’s also unclear how Trump plans to build a social-media platform on the scale of Twitter over the next few months, let alone a streaming service, which is the next phase of Trump Media’s plans, according to the press release announcing the company. That statement was light on numbers even by SPAC standards.
“We have no financials. We have no business plan. We don’t know how they got to the valuation. We have no information,” said Kristi Marvin, CEO of research firm SPAC Insider. “That’s the fundamental problem.”
Former President Donald Trump had been reported to have lost close to half of his wealth during his time serving as president. Trump perhaps is now the richest he’s ever been.
See more #chartoftheday posts.
If you found this article informative, please consider a small donation to our coffee cup to help support Conservative Journalism – or spread the word. Thank you.