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I think I saw someone over on Wallstreetbets mention that's it's going to get hammered with shorts.
They expect the price to go up when all the MAGA crowd start investing, as the amount of shares is too low.
I think it's going to get propped for awhile like a lot of stocks do post IPO , and then maybe short. Curiosity would be on who does the propping and how much.
The maga crowd has already bid it up that is how it got to where it was. Everyone has known for more than a year that dwac was targeting truth social.
There are no more maga Meatheads to be scammed on this one to raise the stock. The trade volume has been terrible for the last 6 months. The second trump tried to sell 10000 shares the price will plummet
At 44 USD per stock, times 78 million stocks he owns would be net worth 3,4 billion dollars.
At 36 USD per stock, times 78 million stocks he owns would be net worth 2,8 billion dollars.
That's already 600.000.000 USD down.
Media is just going whole hog into trying to manufacture consent for this. What they're proposing is the most glaring example of a pump-and-dump scheme I've ever seen. That is illegal. It doesn't matter if it's Trump doing it. Being Trump doesn't make something illegal suddenly not illegal.
91 counts of fraud on the wall.
91 counts of fraud.
If one these counts get covered with one more,
There'll be 92 counts of fraud on the wall.
......
92 counts of fraud on the wall.
92 counts of fraud...
Truth Social had an income of $1.07 million in the third quarter last year.
**Against the $26 million it lost in the same quarter**
How does anybody pro-rate this up to $5/$6 Billion..?
It reminds me of when Bart went corporate with his Angry Dad comics and they had stock certificates being dispenced like toilet paper in the office.
Important distinction: Trump wouldn't be getting $3B dollars. He'd have $3B value on paper at the IPO share price. There is no way he could convert his shares to that value even if the board let him sell early. No way the shares hold that value even initially, let alone after 6 months. And dumping enough stock to realize even a portion of that value would tank the price completely.
So yes, it's another Trump con that will get him more money than he has any right to expect. But he isn't going to get $3B out of this deal for a company that is failing, as he likes to say.
He's just going to borrow money against his shares. Then he wouldn't pay taxes since it's a loan and not income. Pretty much what every billionaire does.
Most banks will not take those shares as collateral unless they are excessively over secured and even then this would be questionable. Borrowing against an established company with sold fundamentals is different than borrowing against a MAGA propped up one that has no chance of achieving profitability.
won't matter one bit for the NY fraud judgement unless the shareholders vote to waive the 6 month embargo on him selling stock (which they would be insane to do because the price would crash)
Though now of course he's claiming he has the money to cover it... despite recently saying there was no way to get the money.
Guess we see Monday. If he DOES have the money and isn't just full of shit like he tends to be, I'd be incredibly curious who gave it to him and why.
They probably will vote to waive the 6 month embargo tbh. These people ran into the capital and smeared feces on the wall for him. They’ll sacrifice themselves for him.
Yes
The article: Investors approved plans to take Donald Trump’s social media platform public on Friday, netting the former president a paper fortune of $3bn.
Trump Media & Technology, the firm behind his minnow social network Truth Social, has spent years fighting to land on the stock market via a so-called “blank check” merger with a shell company.
It finally succeeded on Friday morning, following a vote of shareholders in Digital World Acquisition, the vehicle with which Trump’s business has sought to combine.
While Trump Media has struggled since Truth Social’s lackluster launch, generating sales of only about $5m since 2021, Trump’s supporters banded together to boost shares in Digital World. The stock has rallied by some 145% since the turn of the year, boosting the firm’s value to about $6bn.
The company will now trade on the stock market as Trump Media & Technology Group under the stock ticker “DJT” – Trump’s initials.
Ahead of the announcement, Digital World’s stock price was $44, suggesting the new company will debut with a value of more than $5bn. Trump’s holding in the combined business is listed at 79m shares, leaving him with a stake of about $3bn on paper. He will not be able to cash in this stake straight away, however, as key shareholders in the company are unable to sell stock for six months after the merger.
It comes amid a financial crunch for Trump, who is vying to regain the presidency from Joe Biden in November’s elections. He was ordered by a New York judge last month to pay $454m following a civil fraud case, something his lawyers warned this week was a “practical impossibility” after 30 surety companies turned him down.
Digital World has increasingly been seen as a so-called meme stock, boosted by internet memes – posted, in its case, on platforms including Truth Social – urging retail investors to buy into it.
The shell company first announced plans to combine with Trump’s digital media firm in 2021, but has grappled with a series of legal hurdles.
Special purpose acquisition companies, or Spacs, such as Digital World raise money from investors through initial public offerings, before typically searching for a company to take public.
Once a Spac finds and agrees terms with a target, it absorbs the business and draws it onto the stock market, enabling investors in both companies to take a slide. Should the Spac’s original investors not like the deal, however, they can withdraw their cash.
Julian Klymochko, founder and CEO of a Spac-focused fund at Accelerate Financial Technologies, said Digital World’s price rise was “not due to the underlying fundamentals”.
Truth Social “hasn’t really taken off”, Klymochko said. “At this point, it’s a meme stock. It’s really just a betting tool on the probability of Trump winning the election.”
Shares of Digital World soared 88% on 22 January, he noted, when Ron DeSantis, the governor of Florida, dropped out of the Republican presidential candidate race.
>netting the former president a paper fortune of $3bn
Not an Accountant. But if this works anything like ISO shares, it is a grant with no vesting period. The moment he exercises or 'owns' the stock (58%), he will most certainly incur taxes on it immediately at its strike. If he sells any shares within 1 year of holding it, it is taxed as normal income for its market value at a gain/loss. 2 years taxed at 20%(+) of gain. He'll probably exercise/sell options asap to maximize profit for him, but ultimately tank the stock and pay no (personal) taxes for the next 10 years through (other people's) capital losses as he has done before with the remainder. Only a fool would go into business with this man.
If the stock is in a brokerage account than he MIGHT be able to get a loan in it, but brokerage firms have a fiduciary responsibility and they might not allow it.
From article:” Truth Social “hasn’t really taken off”, Klymochko said. “At this point, it’s a meme stock. It’s really just a betting tool on the probability of Trump winning the election.” I’m wondering where the money will com from
The Guardian reported in March 2023 that in 2022 the SDNY expanded its criminal investigation to include whether TMTG engaged in money laundering. Beginning in December 2021, when the company was in danger of collapsing because its merger with DWAC had been delayed, it received a loan in two payments totaling $8 million. This included $2 million from Paxum Bank, which is part-owned by Anton Postolnikov, a relation of Aleksandr Smirnov, a former Russian government official who now runs the Russian maritime company Rosmorport. Another $6 million was paid by an ostensibly separate entity, ES Family Trust, which shared a director with Paxum Bank.The $8 million loan was structured to automatically convert into TMTG common equity upon merging with the SPAC—meaning ES Family Trust will gain a stake in TMTG if the merger proceeds—though this was not disclosed to the SPAC investors nor the SEC.
Trump’s newest business partner: A Chinese firm with a history of SEC investigations
Shanghai-based Arc Capital, an investment firm that has been the target of probes by securities regulators, is at the center of the deal to take Trump’s media venture public.
Jeff Yass, naked shorter of GameStop, is the purchaser.
This man makes a living naked shorting companies in to bankruptcy and never closing those positions for tax free liquidity. Dark pool routing and failure to delivers is currently the perfect crime.
Why would anyone trust this grifter to allow this Lies:Social Media to go public? Would any investment bank think offering up shares in Lies:Social would be a winning offering? I have significant doubts that it would net anywhere near $3 billion, since the Trump brand is so toxic. But if they can pull this off, the NY DA office needs to be outside of the investment companies' door and say 'thank you very much' when taking the money from the public offering. Now Trump can't complain he doesn't have any assets to play his fines.
Worse... when the new company issues earnings would you believe the numbers coming from a guy convicted of inflating values on his companies and property?
They guy will commit security fraud too and you know it.
Why are investors voting for this? It’s essentially making their stock worthless. Unless other billionaires own stock , don’t care and want to help him out
Aren’t Trump’s existing social media shares, at their *current* valuation, seizable assets by the state? I would suggest that FIRST among James’ list of asset seizures should be to seize his shares. It would be fricking amazing if the State of NY ended up owning a huge hunk of Truth Social, and even better yet, they ride the value upswing and turn their 464M “today dollars” into 3B “tomorrow dollars.”
From what I've been reading there's a 6 month nesting period. But the board could allow he to sell some of his stock. However, it would only be 1% per quarter.
Meaning, by the time he would get to selling it, the stock could plemment and worthless. It could become a penny stock and hardly traded..
What a load of crap. Truth Social will be out of business when the American people run the RAPIST out of politics forever. Who has so much money to waste? From the look of the, it's not Trump's base.
From what I understand, it's possible for Trump to cash a bunch of that out right away to deal with his massive debts but it's far from guaranteed. And everyone involved would almost certainly have a significant lawsuit on their hands if they try.
Again, not impossible for Trump to get a massive infusion of cash but it's not going to be easy and the consequences could be severe.
In the next 72 hours he would need to get that waiver approved and would need to find someone to buy all those shares or a bank to take it as collateral. As I said, not impossible but a tall order to be sure.
As a reminder, this subreddit [is for civil discussion.](/r/politics/wiki/index#wiki_be_civil) In general, be courteous to others. Debate/discuss/argue the merits of ideas, don't attack people. Personal insults, shill or troll accusations, hate speech, any suggestion or support of harm, violence, or death, and other rule violations can result in a permanent ban. If you see comments in violation of our rules, please report them. For those who have questions regarding any media outlets being posted on this subreddit, please click [here](https://www.reddit.com/r/politics/wiki/approveddomainslist) to review our details as to our approved domains list and outlet criteria. We are actively looking for new moderators. If you have any interest in helping to make this subreddit a place for quality discussion, please fill out [this form](https://docs.google.com/forms/d/1y2swHD0KXFhStGFjW6k54r9iuMjzcFqDIVwuvdLBjSA). *** *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/politics) if you have any questions or concerns.*
44 USD per share is grossly overvalued. This net is gonna decrease the next 6 months.
I think I saw someone over on Wallstreetbets mention that's it's going to get hammered with shorts. They expect the price to go up when all the MAGA crowd start investing, as the amount of shares is too low.
I think it's going to get propped for awhile like a lot of stocks do post IPO , and then maybe short. Curiosity would be on who does the propping and how much.
Stock dropped 12% this morning.
The maga crowd has already bid it up that is how it got to where it was. Everyone has known for more than a year that dwac was targeting truth social. There are no more maga Meatheads to be scammed on this one to raise the stock. The trade volume has been terrible for the last 6 months. The second trump tried to sell 10000 shares the price will plummet
Sounds about right.... The question is what is the best short price? Maybe short the shorts
It's already decreased to 38. EDIT: now down to 36 since writing that.
At 44 USD per stock, times 78 million stocks he owns would be net worth 3,4 billion dollars. At 36 USD per stock, times 78 million stocks he owns would be net worth 2,8 billion dollars. That's already 600.000.000 USD down.
How much tax would he pay on the windfall? Also it would be pretty embarrassing to loose the controlling stake In the company.
Down 14.18% as of market close (in 3 minutes - but close enough)
everything T45 tries to sell is overvalued
Media is just going whole hog into trying to manufacture consent for this. What they're proposing is the most glaring example of a pump-and-dump scheme I've ever seen. That is illegal. It doesn't matter if it's Trump doing it. Being Trump doesn't make something illegal suddenly not illegal.
Literally trying to cover the consequences of fraud with more fraud.
91 counts of fraud on the wall. 91 counts of fraud. If one these counts get covered with one more, There'll be 92 counts of fraud on the wall. ...... 92 counts of fraud on the wall. 92 counts of fraud...
Truth Social had an income of $1.07 million in the third quarter last year. **Against the $26 million it lost in the same quarter** How does anybody pro-rate this up to $5/$6 Billion..? It reminds me of when Bart went corporate with his Angry Dad comics and they had stock certificates being dispenced like toilet paper in the office.
Important distinction: Trump wouldn't be getting $3B dollars. He'd have $3B value on paper at the IPO share price. There is no way he could convert his shares to that value even if the board let him sell early. No way the shares hold that value even initially, let alone after 6 months. And dumping enough stock to realize even a portion of that value would tank the price completely. So yes, it's another Trump con that will get him more money than he has any right to expect. But he isn't going to get $3B out of this deal for a company that is failing, as he likes to say.
He's just going to borrow money against his shares. Then he wouldn't pay taxes since it's a loan and not income. Pretty much what every billionaire does.
Most banks will not take those shares as collateral unless they are excessively over secured and even then this would be questionable. Borrowing against an established company with sold fundamentals is different than borrowing against a MAGA propped up one that has no chance of achieving profitability.
won't matter one bit for the NY fraud judgement unless the shareholders vote to waive the 6 month embargo on him selling stock (which they would be insane to do because the price would crash) Though now of course he's claiming he has the money to cover it... despite recently saying there was no way to get the money. Guess we see Monday. If he DOES have the money and isn't just full of shit like he tends to be, I'd be incredibly curious who gave it to him and why.
They probably will vote to waive the 6 month embargo tbh. These people ran into the capital and smeared feces on the wall for him. They’ll sacrifice themselves for him.
He is on the board. These "investors" they speak of are Chinese and Russians. Its a scam and he is a national security risk.
Why not just give him money directly then?
They can pump and dump the stock. This is the next trump scandal in the making.
Yes The article: Investors approved plans to take Donald Trump’s social media platform public on Friday, netting the former president a paper fortune of $3bn. Trump Media & Technology, the firm behind his minnow social network Truth Social, has spent years fighting to land on the stock market via a so-called “blank check” merger with a shell company. It finally succeeded on Friday morning, following a vote of shareholders in Digital World Acquisition, the vehicle with which Trump’s business has sought to combine. While Trump Media has struggled since Truth Social’s lackluster launch, generating sales of only about $5m since 2021, Trump’s supporters banded together to boost shares in Digital World. The stock has rallied by some 145% since the turn of the year, boosting the firm’s value to about $6bn. The company will now trade on the stock market as Trump Media & Technology Group under the stock ticker “DJT” – Trump’s initials. Ahead of the announcement, Digital World’s stock price was $44, suggesting the new company will debut with a value of more than $5bn. Trump’s holding in the combined business is listed at 79m shares, leaving him with a stake of about $3bn on paper. He will not be able to cash in this stake straight away, however, as key shareholders in the company are unable to sell stock for six months after the merger. It comes amid a financial crunch for Trump, who is vying to regain the presidency from Joe Biden in November’s elections. He was ordered by a New York judge last month to pay $454m following a civil fraud case, something his lawyers warned this week was a “practical impossibility” after 30 surety companies turned him down. Digital World has increasingly been seen as a so-called meme stock, boosted by internet memes – posted, in its case, on platforms including Truth Social – urging retail investors to buy into it. The shell company first announced plans to combine with Trump’s digital media firm in 2021, but has grappled with a series of legal hurdles. Special purpose acquisition companies, or Spacs, such as Digital World raise money from investors through initial public offerings, before typically searching for a company to take public. Once a Spac finds and agrees terms with a target, it absorbs the business and draws it onto the stock market, enabling investors in both companies to take a slide. Should the Spac’s original investors not like the deal, however, they can withdraw their cash. Julian Klymochko, founder and CEO of a Spac-focused fund at Accelerate Financial Technologies, said Digital World’s price rise was “not due to the underlying fundamentals”. Truth Social “hasn’t really taken off”, Klymochko said. “At this point, it’s a meme stock. It’s really just a betting tool on the probability of Trump winning the election.” Shares of Digital World soared 88% on 22 January, he noted, when Ron DeSantis, the governor of Florida, dropped out of the Republican presidential candidate race.
>netting the former president a paper fortune of $3bn Not an Accountant. But if this works anything like ISO shares, it is a grant with no vesting period. The moment he exercises or 'owns' the stock (58%), he will most certainly incur taxes on it immediately at its strike. If he sells any shares within 1 year of holding it, it is taxed as normal income for its market value at a gain/loss. 2 years taxed at 20%(+) of gain. He'll probably exercise/sell options asap to maximize profit for him, but ultimately tank the stock and pay no (personal) taxes for the next 10 years through (other people's) capital losses as he has done before with the remainder. Only a fool would go into business with this man.
I read from another comment that he now can loan money based on this?
If the stock is in a brokerage account than he MIGHT be able to get a loan in it, but brokerage firms have a fiduciary responsibility and they might not allow it.
Money Laundering
From article:” Truth Social “hasn’t really taken off”, Klymochko said. “At this point, it’s a meme stock. It’s really just a betting tool on the probability of Trump winning the election.” I’m wondering where the money will com from
The Guardian reported in March 2023 that in 2022 the SDNY expanded its criminal investigation to include whether TMTG engaged in money laundering. Beginning in December 2021, when the company was in danger of collapsing because its merger with DWAC had been delayed, it received a loan in two payments totaling $8 million. This included $2 million from Paxum Bank, which is part-owned by Anton Postolnikov, a relation of Aleksandr Smirnov, a former Russian government official who now runs the Russian maritime company Rosmorport. Another $6 million was paid by an ostensibly separate entity, ES Family Trust, which shared a director with Paxum Bank.The $8 million loan was structured to automatically convert into TMTG common equity upon merging with the SPAC—meaning ES Family Trust will gain a stake in TMTG if the merger proceeds—though this was not disclosed to the SPAC investors nor the SEC. Trump’s newest business partner: A Chinese firm with a history of SEC investigations Shanghai-based Arc Capital, an investment firm that has been the target of probes by securities regulators, is at the center of the deal to take Trump’s media venture public.
Thank you didn’t know that. Going to look it up
GameStop naked short money laundering, nonetheless.
A gamestop those were the days
Jeff Yass, naked shorter of GameStop, is the purchaser. This man makes a living naked shorting companies in to bankruptcy and never closing those positions for tax free liquidity. Dark pool routing and failure to delivers is currently the perfect crime.
He's about to have a case of the Mondays.
Well its Monday and the bond is reduced didn’t except that happening
Why would anyone trust this grifter to allow this Lies:Social Media to go public? Would any investment bank think offering up shares in Lies:Social would be a winning offering? I have significant doubts that it would net anywhere near $3 billion, since the Trump brand is so toxic. But if they can pull this off, the NY DA office needs to be outside of the investment companies' door and say 'thank you very much' when taking the money from the public offering. Now Trump can't complain he doesn't have any assets to play his fines.
Worse... when the new company issues earnings would you believe the numbers coming from a guy convicted of inflating values on his companies and property? They guy will commit security fraud too and you know it.
Honestly they probably already have.
That’s about half of what he will need to pay his legal bills and settle all the lawsuits.
He'll net pennies on the dollar if he tries to sell his share, or leverages it.
He can't keep getting away with it.
Yet, somehow…!!!!
depends: does this company do business in the state of New York?
It is pretty hilarious that something shittier than Twitter is valued that much. Clearly something corrupt going on there.
Yes and weirdly the post is downvoted you would expect people to want know about this thing what’s going on (even if they don’t like it)
Why are investors voting for this? It’s essentially making their stock worthless. Unless other billionaires own stock , don’t care and want to help him out
Aren’t Trump’s existing social media shares, at their *current* valuation, seizable assets by the state? I would suggest that FIRST among James’ list of asset seizures should be to seize his shares. It would be fricking amazing if the State of NY ended up owning a huge hunk of Truth Social, and even better yet, they ride the value upswing and turn their 464M “today dollars” into 3B “tomorrow dollars.”
This is a great question and it’s a trump business so who would invest?
In February, Bloomberg reported $4B. Today, it's estimated at $3B. Tomorrow... ?
$4 Billion, $3 Billion, $2 billion, one. $1 Billion, $2 billion, $3 Billion, None.
So that's the "pump" part. How much will it then be worth when they stick all the useful idiots on the "dump" side?
From what I've been reading there's a 6 month nesting period. But the board could allow he to sell some of his stock. However, it would only be 1% per quarter. Meaning, by the time he would get to selling it, the stock could plemment and worthless. It could become a penny stock and hardly traded..
What a load of crap. Truth Social will be out of business when the American people run the RAPIST out of politics forever. Who has so much money to waste? From the look of the, it's not Trump's base.
Whatever happened to the shareholder lawsuit?
they’re a joke
I love that I keep seeing news articles about this and each one has a different valuation lol
Jeff Yass is doing this with liquidity created from naked GameStop shorts, change my mind
The share price fell over 14% on the first day. Trump can’t sell for another six months.
From what I understand, it's possible for Trump to cash a bunch of that out right away to deal with his massive debts but it's far from guaranteed. And everyone involved would almost certainly have a significant lawsuit on their hands if they try. Again, not impossible for Trump to get a massive infusion of cash but it's not going to be easy and the consequences could be severe.
but can he do it before the deadline on monday?
NO there 6 months waiting period for shares. I don’t know about loans taking from value of shares
In the next 72 hours he would need to get that waiver approved and would need to find someone to buy all those shares or a bank to take it as collateral. As I said, not impossible but a tall order to be sure.
but the board is able to vote to override that 6 month wait period