Shares of Trump Media & Technology Group Corp., ex-president Donald Trump’s media company—which owns Truth Social—will begin publicly trading when stock markets open today. The firm is set to be one of the most politically charged public listings in memory. Here’s what you need to know.
What is Trump Media & Technology Group Corp.?
It’s former president Trump’s media company, commonly abbreviated as TMTG. The company was founded in 2021 by the former president. TMTG’s main product is Truth Social, Trump’s social media platform that primarily competes with Twitter.
When does TMTG start trading?
Shares in Trump Media & Technology Group are expected to begin trading today, March 26, 2024.
Is this Trump Media’s IPO?
Not exactly. Though Trump Media & Technology Group is going public today, it’s not a traditional initial public offering. That’s because the company has merged with a company called Digital World Acquisition Corp.
Digital World Acquisition Corp. (DWAC) is a special purpose acquisition company (SPAC) that itself has traded on the Nasdaq since 2021. SPACs are also known as “blank check companies.” They typically raise money and then acquire a target company, merging with it, and thus taking that acquired company public in a roundabout way compared to a traditional IPO.
Which exchange will TMTG trade on?
Trump Media & Technology Group Corp. will trade on the Nasdaq.
What’s the stock ticker?
Trump Media & Technology Group Corp. will trade under the ticker “DJT” (yes, Donald J. Trump).
Why does that sound familiar?
Well, in addition to being Trump’s initials, DJT is also the symbol for the Dow Jones Transportation Average, which was still appearing in some ticker searches as of Tuesday morning before the bell. Hopefully, investors don’t get too confused.
What is TMTG‘s stock price?
As of the time of this writing, DJT shares are currently trading at around $54 in premarket trading.
How much money will Trump make from the public listing?
It’s difficult to put a firm number on that. NBC estimates that Trump’s shares in DJT could be worth north of $3 billion. But that doesn’t mean the former president now has an extra $3 billion in his bank account. That $3 billion figure is just on paper.
And the terms of the merger agreement forbid Trump from selling his shares for six months, which means for the next six months that $3 billion sum will likely be unusable by the former president, and only time will tell if the company’s value will rise or fall during that period. TMTG’s board of directors could vote to allow Trump to sell his shares earlier, but other investors could always file a lawsuit to stop any such sale.
Why would Trump want to sell his shares so soon?
Simply put, the ex-president needs money—and a lot of it—by next week. While just yesterday an appeals court in New York slashed the $464 million bond in one of the many civil cases that Trump is dealing with, the new reduced bond is still $175 million. Trump only has 10 days from yesterday to come up with the money.
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