Donald Trump's conservative social platform, Truth Social, is poising to become a publicly traded company after shareholders greenlit its merger with Digital World Acquisition Corp.
First reported by CNBC on Friday, the merged company is set to close the deal within the week with Trump at the helm. The decision came two and a half years later after Trump Media & Technology, Truth Social's parent company, first proposed the merger.
(Photo : Chris Delmas/AFP via Getty Images)
The approval is expected to generate the former president a $3 billion windfall amid financial troubles and legal battles hounding him.
Trump, who is currently running for the presidency in the upcoming 2024 Elections, is facing several charges over stealing federal documents, paying hush money, and masterminding the Capitol riot during the 2020 Elections.
It does not help that Truth Social's userbase has been noted to keep decreasing since February 2022.
The social media platform has also been reported to have lost $49 million over the past year with a $26 million loss in the third quarter alone.
Also Read: Donald Trump's Truth Social Receives Approval for Digital World Merger
Trump Opens Idea of More Truth Social Merger
This was not the first time Trump has been reported for leveraging his social media amid all legal troubles.
Earlier this month, Trump was reported of proposed a sell-off to X (formerly Twitter) owner Elon Musk. The discussion between the two billionaires reportedly occurred last summer as conversations between them warmed.
Trump reportedly approached over 30 companies to secure a loan to pay off his $454 million civil fraud judgment but none has provided a bond.
With the Truth Social merger, it provides the indicted president some leveraging power to secure some loans even if his 58.1% stake in the company could not easily be pledged as collateral.
Related Article: Donald Trump is Asking Elon Musk to Buy Truth Social Ahead of 2024 Elections: Sources
More Social Media Platforms Going Public
Although Truth Social itself will not go public, and instead will be its parent company, this marks the period of social media companies becoming public.
Just last week, Reddit also debuted its initial public offering as the forum board opened its shares to public investors, including its most loyal users.
Reddit's shares closed 48% above the IPO on its first day.
