Former President Donald Trump finds himself in dire need of cash to settle over $450 million in legal bills.
Considering liquidating the stock he owns in Digital World Acquisition Corp. DWAC, a “blank check” company merging with the Truth Social parent company, Trump Media & Technology Group (TMTG).
The situation, however, presents challenges as DWAC share price tumbled by almost 14% within hours, closing around $36.94 per share on Friday.
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The sharp decline from a previous 52-week high could potentially impact the estimated value of Trump’s majority stake in the newly formed Trump Media.
Furthermore, Trump holds over 58% stake in TMTG but faces restrictions on share sales for six months.
Nevertheless, the new board, featuring his son, Donald Trump Jr., might reconsider this limitation, possibly enabling Trump to sell shares earlier to address his legal expenses.
This scenario, alongside recent stock performance, could heavily influence the company’s market stability.
Complicating matters, TMTG’s co-founders — Andy Litinsky and Wes Moss — are suing Trump for diminishing the value of their stock shares.
Trading under the ticker symbol DJT on NASDAQ (a nod to Trump’s initials), TMTG hints at Trump’s past publicly traded venture, Trump Hotels & Casino Resorts, which faced financial woes ending in delisting.
Financial challenges persist as Trump prepares for the upcoming election campaign, contrasting with reports of President Joe Biden receiving pledges of up to $1 billion from Democratic-leaning groups for the re-election drive.
Price Action: DWAC saw its stock soar to a 52-week high of $58.72 per share on Jan. 23, amid anticipation of the imminent merger.
However, just before the shareholder vote, the stock dropped to $44.20 per share on Friday morning. In after-hours trading, it slightly rebounded to $38.55 per share — marking a 12.7% decline from the opening price.
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This content was partially created with the assistance of AI tools and underwent review by Benzinga editors.
Image: Shutterstock
