Could Trump’s $3.5 BILLION windfall from Truth Social deal come too late? Ex-president’s huge social media payday may not be enough to stop Letitia James freezing his bank accounts just four days before deadline to pay $454 million fraud fine

Former President Donald Trump could become more than $3 billion richer after Digital World Acquisition shareholders approved a merger with his Truth Social media site on Friday.

And he could use the money.

The deal was announced as the presumptive Republican presidential nominee faces a $454 million judgment in a New York fraud case.

But the ins and outs of the deal, based on stock prices and a fashionable “acquisition for special purpose acquisitions,” mean he may not be able to get his hands on as much as $3.5 billion in the next six months.

On Friday, he took to his site claiming he had squandered $454 million for his campaign and accused New York Attorney General Letitia James of election interference.

“No trial, no jury, no crime, no victim, just a corrupt judge and a corrupt, Trump-hating attorney general who takes her orders straight from the White House,” he posted in all capitals.

Trump was busy using his Truth Social platform to attack New York Attorney General Letitia James on Friday morning, just before the deal went through

“Election interference at a level we’ve never seen before.”

Truth Social has been his main public mouthpiece since he founded it two years ago after being banned from other sites including Twitter and Facebook.

Its value to him now could be a source of cash even as it loses tens of millions of dollars a year.

Meet Digital World, a publicly traded shell company formed specifically for the purpose of merging with a private company. After courting Trump Media and Technology Group for more than a year, the deal was sealed on Friday.

That means Trump’s media group will take the place of the shell company and “DJT” will soon list on the Nasdaq stock market, possibly as soon as Monday, all without the red tape of an “initial public offering.”

That marks an extraordinary payday for the former president. Its 79 million shares have a share price of more than $42, with a paper value of $3.3 billion.

However, such “SPAC” deals typically come with a lock-up provision that prevents insiders from immediately selling their shares.

In the case of Digital World Acquisition and Trump Media and Technology Group, Trump must hold the stock for six months.

That’s a problem for Trump, who faces a Monday deadline to find a bond that would guarantee payment of a $454 million civil fraud judgment against him. So far he has been unable to find a company willing to support him, and he is at risk of having property or businesses seized.

New York AG Letitia James has already threatened to seize assets if Trump does not issue bonds

Trump founded Truth Social in February 2022 after being booted from other social media platforms such as Twitter, Facebook and YouTube following the January 6 attack on the Capitol

Time is of the essence. That bill could increase by more than $100,000 in interest per day.

In some cases, the SPAC shell company may drop the lockup provision, or the newly merged board may revise the terms after a deal closes. But board members would likely face questions about whether that was in the best interests of other shareholders.

A lot can change in six months. The value of Trump’s stock will rise and fall in line with the stock price.

A large group of supporters could help keep the price high, says Harry Kraemer, a professor specializing in mergers and acquisitions at Northwestern University’s Kellogg School of Management.

“If in the short term a lot of people say, ‘I don’t really care what it’s worth, I’m just going to keep buying it and I’m going to keep supporting it,’ then you can do that for a while. reasonable time,” he told CBS News.

For now, this means that Truth Social, believed to have around five million active users, remains more of a mouthpiece than a cash cow.

“Truth Social is my voice and the real voice of America,” Trump posted Thursday evening.

“Keep your filthy hands off Trump Tower,” Trump said at the fundraising pitch

Instead, his campaign focused on fundraising emails as a way to raise money to prevent this. At least four blasts were broadcast Wednesday and Thursday, with subject lines like “Hands off Trump Tower” and “Trump Tower is mine.”

And on Friday, he continued his attacks on James, who filed the fraud lawsuit, accusing him of increasing or decreasing the value of his assets depending on whether he used them to take out loans or raise taxes.

He claimed she was using a new statute to come after him.

“Under this statute, I don’t get a jury and I have no rights,” he said.

“All decisions and rights in this case have been given to a corrupt, Trump-hating judge, who came up with an insane, out-of-the-blue award, to do me political damage and not allow me to become one of the great use statements. amount of money that I have built up over the years, through hard words, insight, instinct and dedication, during my political campaign for the presidency.’