Trump Media’s Blockbuster SPAC Deal Set to Enrich Allies and Foes

Bloomberg03-21

(Bloomberg) -- Donald Trump isn’t the only one set to become a lot richer if the former president’s media startup debuts as a public company – at least on paper. Most Read from Bloomberg Baltimore ...

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Sam Bankman-Fried Says 50-Year Sentence Only Suitable for a ‘Super Villain’。Justice Department to Sue Apple for Antitrust Violations as Soon as Thursday. Trump Rules Out Vivek Ramaswamy as Running Mate as He Eyes New Team. Fed Signals Three Rate Cuts Are Still Likely, Despite Inflation Uptick. If shares hold near current levels, Devin Nunes, a former California Representative who left Congress to become CEO of Trump Media, will have a less than 1% stake of the company worth $4.9 million, while DWAC CEO Eric Swider and Trump Media CFO Phillip Juhan eye stakes of $7.7 million and $21 million, respectively. Of course, those returns pale in comparison to the $3.4 billion Trump is set to reap, since he will own more than half of the company, and will get another $1.5 billion in stoc","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4516":"特朗普概念","DWACU":"Digital World Acquisition Corp."},"translate_title":"特朗普媒体重磅炸弹特殊目的收购公司交易将丰富盟友和敌人","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"DWAC":0.9,"DWACU":0.9,"DWACW":0.9},"content_text":"(Bloomberg) -- Donald Trump isn’t the only one set to become a lot richer if the former president’s media startup debuts as a public company – at least on paper.\nMost Read from Bloomberg\n\nBaltimore Wants to Sell Hundreds of Vacant Homes for $1 Each\nSam Bankman-Fried Says 50-Year Sentence Only Suitable for a ‘Super Villain’\nJustice Department to Sue Apple for Antitrust Violations as Soon as Thursday\nTrump Rules Out Vivek Ramaswamy as Running Mate as He Eyes New Team\nFed Signals Three Rate Cuts Are Still Likely, Despite Inflation Uptick\n\nShareholders are scheduled to vote Friday on whether blank check company Digital World Acquisition Corp. can proceed with taking Trump Media & Technology Group, which runs the Truth Social platform, public. If the long-delayed deal is approved, a number of insiders, from management to sponsors, and even former associates who sued to stall or block the deal, stand to pocket millions of dollars.\n“It’ll make quite a few people pretty wealthy on paper, but can they crystallize that wealth? That’ll be TBD,” said Julian Klymochko, chief executive officer of Accelerate Financial Technologies, which has a SPAC-focused fund.\nShares of DWAC, as the special purpose acquisition company or SPAC is known, have held onto a 145% gain this year, meaning stakeholders in the firm are in for a windfall. While the stock has peeled back from a January high, its strong rally in 2024 leaves plenty of room for performance targets to be met that would provide further equity-based rewards.\nIf shares hold near current levels, Devin Nunes, a former California Representative who left Congress to become CEO of Trump Media, will have a less than 1% stake of the company worth $4.9 million, while DWAC CEO Eric Swider and Trump Media CFO Phillip Juhan eye stakes of $7.7 million and $21 million, respectively. Of course, those returns pale in comparison to the $3.4 billion Trump is set to reap, since he will own more than half of the company, and will get another $1.5 billion in stock if shares keep performing well.  \nRead more: Trump Eyes $4 Billion Stock Windfall as His Legal Bills Pile Up\nOn top of their stakes, Nunes and Juhan are each set to collect retention bonuses of $600,000 if the deal closes.\nDWAC moved on Tuesday to ensure that the deal goes through by suing to force its sponsor ARC Global Investments II to vote in favor of the deal. Industry watchers had mixed views on how the lawsuit could impact an approval. However, a terminated pact will cost all parties dearly, including ARC Global — which currently stands to make more than $400 million on the deal.\nIn its own lawsuit, ARC Global managing partner and former DWAC CEO Patrick Orlando’s firm has been trying to delay the deal arguing it should have an increased position in the new company — potentially bolstering its holding by 26%.\nRepresentatives for DWAC, Trump Media and ARC Global didn’t respond to requests for comment. \nMeanwhile, Trump Media co-founders Andy Litinsky and Wes Moss, both former contestants on Trump’s reality show The Apprentice, who have separately sued the SPAC are set to take home about $320 million, with potential for almost $150 million more in earnout shares. \nThere are a number of caveats to the windfalls. Trump and other stakeholders will have to wait months to cash out because members of Trump Media’s management team are subject to a lock-up period of roughly six months during which they cannot sell or transfer shares, unless the company files to expedite that timing. \nThe earnouts are also dependent on shares avoiding the fallout that’s typically hit SPAC deals. Trump Media’s goal of rivaling “the liberal media consortium” has proven difficult to achieve. The company is struggling to generate a profit, losing $49 million in the nine months through September while delivering just $3.4 million in revenue.\nBut so far, investors have paid little attention to the company’s financials as DWAC has cemented its status as a meme stock that traders pour into to bet for or against Trump.\nRead more: Trump Fuels Meme-Like Rallies in Stocks Tied to 2024 Bid\nMost Read from Bloomberg Businessweek\n\nElon Musk’s Don Lemon Implosion\nSelling Shohei Ohtani: Can Baseball’s Biggest Talent Transform the Sport?\nOpenAI Sprinting to Keep Up With Startups on AI-Generated Video\nJulius Baer Hits Reboot to Escape Swiss Banking’s New Malaise\nChina’s Super-Cheap EVs Offer Hope for Average American Buyers\n\n©2024 Bloomberg L.P.","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.1","shortVersion":"4.29.1","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2421018331"}