- Donald Trump is set to receive a 58% stake in the post-merger Trump Media & Technology Group, Bloomberg reported.
- That’s a $US4.8 ($AU6) billion stake he and any partners will own based on the DWAC stock price.
- Trump’s current net worth is $US2.5 ($AU3) billion, the Bloomberg Billionaires Index shows.
Donald Trump is set to receive more than half of his future public company – and that could mean billions more dollars in his pocket, Bloomberg reported Saturday.
The former president announced plans last week to take his company public through a merger with Digital World Acquisition Corp., a blank-check company better known as a special purpose acquisition company.
Digital World Acquisition quickly turned into a meme stock as retail traders rallied around the future business. The shares, which were worth $US10 ($AU13) at the initial offering, topped $US100 ($AU134) midday Monday.
In its press release, the company estimated it would have an initial enterprise value of $US875 ($AU1,168) million “with a potential additional earnout of $US825 ($AU1,101) million in additional shares (at the valuation they are granted).”
Taking into account the company’s estimates and the DWAC stock price, Bloomberg found the eventual combined business has fetched an $US8.2 ($AU11) billion market value.
Based on that, Bloomberg reporters calculated that with Digital World Acquisition’s $US10 ($AU13) per share offering price plus its $US293 ($AU391) million in trust, the SPAC owners will get 42% of the combined company (a reward for finding a deal). The remaining 58% would go to Trump and any partners, Bloomberg said. That’s about $US4.8 ($AU6) billion.
A representative from Trump Media & Technology Group did not immediately respond to Insider’s request for comment. Trump is currently worth about $US2.5 ($AU3) billion, according to the Bloomberg Billionaires Index.
Others have also pocketed big gains from the proposed merger, including hedge funds Highbridge Capital Management, Lighthouse Partners, K2 Principal Fund, and Saba Capital Management, which all invested in the SPAC’s stock and made a killing following last week’s announcement.
Trump’s media company didn’t provide much in the way of financial statements or outlook upon announcing the merger with Digital World Acquisition. Even so, the former president said he is planning to launch a social media site called “Truth Social” to rival “the liberal media consortium and fight back against the ‘Big Tech’ companies,” according to the press release.