Achi news desk-
Donald Trump’s new media company, based on his dud social media platform, will provide a barometer for investors’ perceptions of the convicted fraudster.
While Donald Trump appears to be dodging a bullet politically, the more mundane world of finance – one that he has conned, conned and litigated his way through for decades – is proving more problematic, and could be more problematic, and it can be very useful in terms of fortune at the same time. possibly the future president.
Tonight in our time Trump faces the deadline to post a US $ 454 million bond, after Judge Arthur Engoron found that he had fraudulently inflated his wealth to secure loans and business deals. Trump has already been given a month’s extension to find the money – US media reports say around 30 bond companies have refused to help him. It is estimated that the “billionaire” Trump has about US$300 million in liquid assets – but he already had to set aside US$100 million to set a bond to cover the damages in the E. Jean Carroll defamation case.
Since then, the military monarch of Mar-a-Lago has been bombarding his fans with demands for cash lest he be forced to give up properties like Trump Tower.
In practice, last Friday, the sale of Trump’s social media platform, Truth Social, finally went through. Trump received almost 80 million shares in Digital World Acquisition Corp (DWAC) for the sale of the platform. He is required to keep the share for six months, but the board of the company – to be renamed Trump Media – can vote to lift that restriction, and will likely see his son Donald Trump Jr and other Trump friends on board. Although that would allow him to sell shares to cover his legal costs much sooner, the US Federal Elections Commission could investigate the identity of the buyer or buyers as a form of political donation.
Investors reacted to the deal by rushing for the exits: DWAC shares plunged nearly 14% after it was approved. Their concern – beyond that Trump is likely to dump his shares as soon as possible – is about whether he and his platform can ultimately provide enough revenue.
In fact, Truth Social – like so many Trump initiatives – is one for the suckers: it has reported almost US$50 million in losses over the first three fiscal quarters of 2023. It took in less than US$3.5 million in revenue during that period and her cash reserves are almost gone. It has approximately five million active subscribers; in comparison, even after Elon Musk systematically dismantled the site, Twitter has over 200 million daily active users globally, and over 50 million monthly active users in the United States.
The new company, Trump Media, will use the ticker symbol DJT when it begins trading on Nasdaq shortly before Easter. But its share price will become a very real barometer of its popularity and future prospects. Regardless of how much he claims to have in real estate assets and other private wealth, Trump Media’s share price will now become a measure of his success or otherwise. Eventually, there may not be enough suckers to keep the new company going.
