Shreholders voted Friday to take Donald Trump’s media company public, a move that could give him a multi-billion dollar lifeline just as he is forced to pay a $454 million court judgment against him.
Digital World Acquisition shareholders have opted to merge the special purpose acquisition company with the Trump firm that owns its Truth Social platform, netting a $3.3 billion windfall at the current share price.
Trump couldn’t sell the stock immediately, but it would give him another valuable asset: a 60 percent stake in the company he helped found after leaving office and being kicked off Twitter.
SPAC’s stock price fell 7 percent after the initial news, as markets assess the media company’s value. Trump will receive about 80 million shares through the deal, so the value of his stake would fluctuate.
Unless he receives a waiver, Trump would be prohibited from selling his shares until the end of a six-month period.
Donald Trump claimed he had half a billion dollars in cash in a series of angry posts on Truth Social as the deadline for paying New York’s $454 million fraud fine approached. His stake in his media company was valued at $3.3 billion after a shareholder vote on Friday
It’s just one of his many assets that isn’t as liquid as he would like, with Trump’s lawyers complaining that he hasn’t been able to use his portfolio of valuable real estate assets to secure a bond that would allow him to meet the court’s judgment can pay for his fraud in New York. case.
Trump shouldn’t have too much trouble getting what he wants from the publicly traded company’s board. It includes the former president’s son Donald Trump Jr., former Pentagon loyalist Kash Patel, and wrestling executive and former SBA administrator Linda McMahon, who left her government post to join a Trump PAC in 2019.
Digital World Acquisition Corp. filed a lawsuit this week in New York state court to force its largest investor, ARC Global Investments II, to vote in favor of the deal.
SPACs like DWAC essentially raise money and then look for companies to acquire through mergers. Shares in DWAC rose 145 percent for the year on Thursday following news of the possible merger.
“ARC must vote in favor of the merger based on the unambiguous terms of the letter agreement,” the lawsuit said. “There are no exceptions despite ARC’s board member Patrick Orlando’s desire to hold ARC’s vote hostage for his personal gain,” the report said. Bloomberg News reported, citing the former chairman who had expressed concerns about how much shareholders would get from the merger.
The vote on the merger came Friday after multiple shareholder lawsuits
The new company, Trump Media, could start trading on the Nasdaq under the former president’s initials, DJT, starting Monday — after he used a similar ticker symbol for his failed casino empire, the WashingtonPost reported.
Trump claimed in a series of angry posts on Truth Social that he had half a billion dollars in cash ahead of the deadline to pay New York’s $454 million fraud fine.
The former president made no mention of paying the bail and insisted that a “significant amount” of the huge amount of money was set aside for his campaign.
He also hinted that New York Attorney General Letitia James and Judge Engoron chose the huge fine to deter him from running for president.
His early morning tirade came hours after it was revealed that James had taken its first steps to seize properties in Westchester – and after his lawyers asked the court to delay or reduce the judgment to a fraction of the amount, citing the inability to obtain an endorsement.
The attorney general formally entered judgments on March 6 in Westchester County, where Trump has the two properties just north of Manhattan.
According to the county clerk’s online database, the judgments were registered against Trump, the Trump Organization and his two adult sons Don Jr. and Eric. The action was first reported by Bloomberg News.
That could be a signal that James plans to file liens on Trump’s luxury Seven Springs estate or his golf course in the county.
Trump has until Monday to pay the fine or his accounts could be frozen and the process of confiscating his support could begin. Trump’s prized assets in Manhattan, from his stake in the Art Deco skyscraper at 40 Wall Street to Trump Tower, could be at risk.
In the headline message on Friday morning, Trump wrote: “THANKS TO HARD WORK, TALENT AND LUCK, I CURRENTLY HAVE ALMOST FIVE HUNDRED MILLION DOLLARS IN CASH, A SIGNIFICANT AMOUNT THAT I PLANned to use in my campaign for President.
‘THE OFTEN DESTROYED POLITICAL HACK JUDGE IN THE WRONG AND CORRUPT AG CASE, WHERE I DID NOTHING WRONG, KNEW THIS, WANTED TO TAKE IT FROM ME, AND THAT’S WHERE AND WHY HE CAME UP WITH THE SHOCKING NUMBER THAT, COUPLED WITH HIS THE CRAZY INTEREST DEMAND IS ABOUT $454,000,000.
“I DID NOTHING WRONG EXCEPT WINNING AN ELECTION IN 2016 THAT I DID NOT EXPECT TO WIN, DOING EVEN BETTER IN 2020, AND NOW LEADING A LOT INTO 2024. THIS IS COMMUNISM IN AMERICA!
He added: THE NEW YORK AG USED A STATUTE TO HIRE ME THAT HAS NEVER BEEN USED BEFORE, NOT ONCE, FOR SUCH A PURPOSE. IT IN ITSELF IS SOOO UNCONSTITUTIONAL AND UNFAIR.
“Keep your filthy hands off Trump Tower,” Trump said at the fundraising pitch
Trump lawyer Alina Habba on Wednesday called the idea that he would have to sell his real estate “completely ridiculous.”
Trump’s 212-acre Seven Springs estate in Bedford, NY is also in Westchester County
New York AG Letitia James has already threatened to seize assets if Trump does not issue bonds
Trump has repeatedly likened the court’s ruling against him in his New York fraud case to election interference, saying prosecutors and judges are trying to hamper his campaign
“UNDER THIS STATUTE, I DO NOT GET A JURY AND I HAVE NO RIGHTS. ALL DECISIONS AND RIGHTS ARE GIVEN TO, IN THIS CASE, A CORRUPT, TRUMP-HATING JUDGE, WHO CAME WITH A CRAZY, OFF THE AIR OFFENSE, TO HARM ME POLITICALLY, AND NOT ALLOW ME TO RECEIVE ANY OF THE LARGE AMOUNT USING CASH THAT I HAVE BUILT OVER THE YEARS, THROUGH HARD WORK, INSIGHT, INSTINCT AND DILIGENCY, FOR MY POLITICAL CAMPAIGN FOR PRESIDENT.
“THAT IS EXACTLY WHAT COOKED JOE BIDEN WANTED THIS POLITICAL HACK LINKED TO A CORRUPT AND RACIST ATTORNEY GENERAL. I DID NOTHING WRONG!
“This is just a ‘take.’ LIKE WHAT IS BEING DONE IN COMMUNIST COUNTRIES, AND WHICH WILL LEAVE AN IRRESPORABLE STAIN ON THE STATE OF NEW YORK AND ITS JUDICIAL SYSTEM. IT IS COMPLETELY UNCONSTITUTIONAL, INCLUDING THE HARD GAG ORDER THAT HAS BEEN IMPOSED. THE BIRTHDAY IS ALREADY DECIDED FOR ME!’
His claim that he has nearly half a billion in cash runs counter to arguments in legal filings from his lawyers, who argue that Trump has failed to secure a bond.
That indicated that his finances were under pressure after he previously paid a $91 million bond in the defamation case against E. Jean Carroll, which, like his fraud case in New York, is also attractive to Trump.
Trump previously testified in his fraud case that he had $400 million in cash.
But days ago he complained that as a result of the stunning verdict, “I would be forced to mortgage or sell Major Assets, perhaps at Fire Sale prices, and if and when I win the Supreme Court, they would be gone.” .’
His lawyers also complained that after contacting 30 institutions, none were willing to underwrite the bond.
They wrote to the court in a court filing this week: “Defendants’ continued efforts have proven that bail for the full amount of the judgment is ‘a practical impossibility.’
A new court order Thursday established a reporting mechanism for what will become court-appointed supervisor Barbara Jones will monitor the company for the next three years under a preliminary injunction, which takes effect Thursday.
It must be notified of any major cash transfer, debt restructuring, asset dissolution, and any attempt to secure bonds.
Trump lawyer Alina Habba has not dismissed the possibility of Trump taking an overseas lifeline amid rumors he would accept an infusion from Saudi Arabia.
“Well, there are rules and regulations that are public. I can’t talk about strategy; that requires certain things, and we have to follow those rules,” Habba told Fox News host Martha MacCallum on Wednesday.