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The Big Story
Truth Social merger could give Trump windfall
Shareholders of Digital World Acquisition Corp. (DWAC) approved a merger with former President Trump’s Truth Social on Friday, teeing up the social media company’s stock market debut and a potential $3.5 billion cash infusion for Trump.
The Securities and Exchange Commission (SEC) greenlighted the long-delayed merger between DWAC and Trump Media & Technology Group (TMTG) last month.
The deal could be a $3.5 billion windfall for Trump, who would control nearly 79 million shares in the newly merged company.
The potential cashflow comes as the former president struggles to secure a $464 million bond in his New York civil fraud case.
Trump’s lawyers said earlier this week that a lack of cash would make it “impossible” to for the former president to secure the full appeal bond.
Trump risks the seizure of his assets if he cannot come up with the half billion-dollar bond by Monday. The New York attorney general’s office has already taken a step toward seizing Trump’s golf resort and private estate Seven Springs.
A provision that bars insiders from selling new shares for six months means the former president will not be able to immediately access the money he stands to make from the merger.
Because Trump will hold nearly 60 percent of shares in the new company, DWAC warned in regulatory filings ahead of Friday’s shareholder vote that Trump himself was a potential risk.
Not only would Trump’s interests may perhaps not align with the other stockholders, but also company’s “success depends in part on the popularity of its brand and the reputation and popularity” of the former president, according to the filing.
The merger also faces several lawsuits from former company leaders, including TMTG co-founders Andy Litinsky and Wes Moss and former DWAC chair and CEO Patrick Orlando.
Welcome to The Hill’s Business & Economy newsletter, we’re Aris Folley and Taylor Giorno — covering the intersection of Wall Street and Pennsylvania Avenue.
Republicans are battling among themselves over whether to push reforms to reduce Social Security spending, with some conservatives rallying around the idea of raising the retirement age.
The House approved a $1.2 trillion government funding bill Friday, sending the sprawling package to the Senate hours before the deadline and officially capping off the fiscal 2024 appropriations process in the lower chamber.
Former White House ethics head Norm Eisen called former President Trump “dumb” Friday for claiming he has nearly $500 million in cash despite his lawyers previously indicating that he cannot secure a $454 million bond in his New York civil fraud case.
Rep. Mike Gallagher (R-Wis.) announced Friday he would resign from Congress before his term is up, shrinking the GOP’s already razor-thin majority in the House. Read more
U.S. District Court Judge Aileen Cannon largely sided with special counsel Jack Smith in a battle to shield certain information from former President Trump’s lawyers as they prepare for trial in his documents case. Read more
