Trump's financial outlook tied to Truth Social's IPO outcome

Former President Donald Trump has revealed plans to launch his social media platform, Truth Social, on the New York Stock Exchange via a backdoor listing as early as Monday. Trump, currently facing significant legal expenses from four criminal cases and multiple civil suits, is seeking to address his financial challenges.

Media outlets, including the Wall Street Journal (WSJ), reported on March 21 that Trump's listing of Truth Social could generate a minimum of $3.5 billion for him, as he currently holds a 60% stake in the platform. This move aims to narrow the funding gap with incumbent President Joe Biden, who currently leads in fundraising and will be Trump's opponent in the upcoming presidential election in November. Financial circles in the U.S. estimate that the corporate value of Truth Social would be at least $6 billion.

Truth Social's parent company, TMTG, is currently pursuing a merger with Digital World Acquisition Corp., a special-purpose acquisition company listed on the NYSE. As reported by the WSJ, Digital World Acquisition Corp. shareholders are set to vote on the merger with TMTG on Friday, and the move is expected to receive approval. The merged entity will be listed under the former president's initials, DJT.

A key consideration is that Trump won't be able to sell his stocks immediately after the platform is listed due to U.S. financial regulations. These regulations prohibit the largest shareholder from selling stocks for six months after going public. Experts anticipate that he may use his shares as collateral to secure a loan during this period.

Trump recently lost his initial civil trial, where he faced charges of inflating his family company, the Trump Group's assets for loan purposes. He has failed to secure the required $454 million deposit for the appeals trial. If the deposit is unpaid by Monday, prosecutors can seize Trump's assets, including real estate.


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