Former United States President Donald Trump on Friday came a step closer to reaping a major windfall from his social media firm after investors in a blank-check acquisition company approved a tie-up currently worth about 5 billion dollars.
The deal values Trump’s majority stake in the company that holds his app Truth Social at about 3 billion dollars. The windfall could prove vital as Trump grapples with the financial fallout of a string of legal cases against him, including a 454 million dollars judgment in a civil fraud case in New York.
Shareholders of Digital World Acquisition Corp (DWAC), the SPAC that plans to list Trump Media & Technology Group on the stock market through a merger, voted in favor of the deal on Friday.
The deal is also poised to deliver a vital three hundred million dollars cash infusion to TMTG. The social media company lost ten point six million dollars from its operations in the first nine months of 2023 after losing twenty-three point two million dollars in 2022 and has been funding itself by borrowing over forty million dollars through convertible promissory notes that can be paid back in stock.
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