Trump has billions in new paper wealth. But accessing it quickly could get messy.

Yahoo Finance03-27

The cash-strapped Donald Trump would surely love to quickly access the billions of dollars his newly-public media company is now worth. He might have no choice but to wait. The former president and ...

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But accessing it quickly could get messy.","media":"Yahoo Finance","content":"<div>\n<p>The cash-strapped Donald Trump would surely love to quickly access the billions of dollars his newly-public media company is now worth. \nHe might have no choice but to wait.\nThe former president and ...</p>\n\n<a href=\"https://finance.yahoo.com/news/trump-has-billions-in-new-paper-wealth-but-accessing-it-quickly-could-get-messy-132532921.html\">Source Link</a>\n\n</div>\n","source":"yahoofinance","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Trump has billions in new paper wealth. But accessing it quickly could get messy.</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nTrump has billions in new paper wealth. But accessing it quickly could get messy.\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-03-27 21:25 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/trump-has-billions-in-new-paper-wealth-but-accessing-it-quickly-could-get-messy-132532921.html><strong>Yahoo Finance</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>The cash-strapped Donald Trump would surely love to quickly access the billions of dollars his newly-public media company is now worth. \nHe might have no choice but to wait.\nThe former president and ...</p>\n\n<a href=\"https://finance.yahoo.com/news/trump-has-billions-in-new-paper-wealth-but-accessing-it-quickly-could-get-messy-132532921.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"DJT","symbol_name":"特朗普媒体科技集团","start_time":0,"source_url":"https://finance.yahoo.com/news/trump-has-billions-in-new-paper-wealth-but-accessing-it-quickly-could-get-messy-132532921.html","article_id":"2422999228","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/APqsu9x1MfmAMuYp4dkmSw--~B/aD0zMzI3O3c9NDk5MDthcHBpZD15dGFjaHlvbg--/https://s.yimg.com/os/creatr-uploaded-images/2024-03/015f87c0-ec2f-11ee-8fff-601ac1162f09"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2422999228","pubTimestamp":1711545932,"columns":[],"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"The cash-strapped Donald Trump would surely love to quickly access the billions of dollars his newly-public media company is now worth.He might have no choice but to wait.The former president and his allies have options to try to short-circuit the \"lock up\" period now in place for large shareholders of Trump Media & Technology Group Corp. .But making such a move, a variety of corporate finance and IPO experts told Yahoo Finance this week, could very quickly become extraordinarily messy.History shows such a maneuver could lead to a stock price drop followed by an \"inevitable lawsuit\" on behalf of public market shareholders, according to Jay Ritter of the University of Florida's Warrington College of Business.This is a merger that \"has already been a gravy train for lawyers,\" Ritter added, and litigation would likely begin anew if there was even a public discussion of waiving of the standard short-term trading prohibition.For starters, his company is populated by a board of directors tha","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"DJT":"特朗普媒体科技集团","DJTWW":"TRUMP MEDIA & TECHNOLOGY GROUP CORP C/WTS 25/03/2029(TO PUR COM)"},"translate_title":"特朗普拥有数十亿新的账面财富。但是快速访问它可能会变得混乱。","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"DJT":1,"DJTWW":0.9,"DWAC":0.9},"content_text":"The cash-strapped Donald Trump would surely love to quickly access the billions of dollars his newly-public media company is now worth. \nHe might have no choice but to wait.\nThe former president and his allies have options to try to short-circuit the \"lock up\" period now in place for large shareholders of Trump Media & Technology Group Corp. (DJT). \nBut making such a move, a variety of corporate finance and IPO experts told Yahoo Finance this week, could very quickly become extraordinarily messy.\nHistory shows such a maneuver could lead to a stock price drop followed by an \"inevitable lawsuit\" on behalf of public market shareholders, according to Jay Ritter of the University of Florida's Warrington College of Business.\nThis is a merger that \"has already been a gravy train for lawyers,\" Ritter added, and litigation would likely begin anew if there was even a public discussion of waiving of the standard short-term trading prohibition.\nUsha Rodrigues, a corporate finance and securities law specialist at the University of Georgia largely agrees. Any downward price action following a move to waive Trump's agreement would allow shareholders to show injury and give them standing to sue, she said.\n\"There's bad optics if a founder or a major shareholder seems to be running for the hills,\" she added in an interview this week.\nThe idea behind a \"lock up\" period is to protect a newly public company's interests and allow it to preserve stability before its founders can cash out. \nBut that 6-month prohibition creates a potential dilemma for Trump as he faces a possible near-term cash crunch on multiple fronts.\nA price surge this week in the parent company of Truth Social also means his stake in the company is now worth well over $4 billion. The paper windfall has doubled Trump's net worth and put him, for the first time, among the world's 500 richest people.\nWhat remains unclear is if Trump and his allies are actively pondering an attempt to waive the lock-up period. Company representatives didn't respond to a request for comment. \nOther developments this week — notably a legal win for Trump Monday around the civil fraud judgment against him — could lessen his need for quick cash. \nBut this giant reserve of money could nonetheless be a tempting asset in coming 6 months where Trump will simultaneously be trying to ward off an array of legal challenges while also trying to win an election over President Joe Biden.\nWhat trying to waive the lockup might look like\nThere are some examples in recent history of newly-public companies amending their lockup procedures — especially in the technology space — but none under quite the political microscope that Trump finds himself in this year.\nBut if he were to try and undertake such a move, he does start with some significant advantages.\nFor starters, his company is populated by a board of directors that is uniquely sympathetic to the former President. The 7-member panel includes multiple former Trump cabinet officials, Devin Nunes, the former congressman and current CEO of the Trump Media & Technology Group. Even Trump's own son, Don Jr., on the board.\nTrump also owns 60% of his company's shares, making his voice determinative if he chose to participate in a shareholder vote. \nBut Trump might have no choice but to involve other shareholders and that's where it gets complicated quickly.\n\n\n\n  News of Trump Media & Technology Group public trading is seen displayed in Times Square on March 26. (Michael M. Santiago/Getty Images)\n \n\n  Michael M. Santiago via Getty Images\n \n\nXavier Kowalski is a former M&A lawyer now at the University of Florida. He notes that Trump and his allies would likely need to call for a shareholder vote if they seek to amend the company's certificate of incorporation.\nIf Trump chose to ignore what most would consider a clear conflict of interest and participate in such a vote, Kowalski says, but \"that is a dangerous fact pattern that invites a shareholder lawsuit.\"\nThe more legally sound path, it seems, would be to hold a shareholder vote but limit it to non-conflicted insiders.\nReena Aggarwal at Georgetown's McDonough School of Business points out how that is far from an easy process. \"It's expensive in terms of the dollars involved and it's expensive in terms of the time involved,\" she says.\nProfessor Ritter, who is known as \"Mr. IPO\" for his work on initial public offerings, also notes such a move could backfire with it possible, and perhaps even likely, \"that the shareholders will say no.\"\nAnd even then, all that wouldn't guarantee a shareholder lawsuit wouldn't follow that could seek an injunction to try and stop the waiver attempt before Trump could sell a single share.\n\"A judge would be asked to make a decision either allowing the sale of shares, or prohibiting the sale until the litigation was finished,\" predicts Ritter.\nWill Trump try?\nAll these complications are likely weighing on Trump and his allies as they weigh whether to attempt such a procedure. \nThe news Monday that he won a bid Monday to pause the $454 million civil fraud judgment against him if he posts a smaller $175 million bond instead could lessen some of the pressure.\nTrump says he already has the cash to cover that smaller bond amount due next week which would allow him to avoid potential asset seizures following his company's conviction for fraud.\n\n\n\n  Former President and Republican presidential candidate Donald Trump in Florida on March 19. (GIORGIO VIERA/AFP via Getty Images)\n \n\n  GIORGIO VIERA via Getty Images\n \n\nBut Trump's 2024 campaign could use the cash as well. The latest filings show Biden's re-election campaign is significantly out-raising Trump. As of the end of February, the current president has $71.2 million on hand versus Trump's $33.5 million.\nAnother option that Trump could also pursue to leverage the forthcoming windfall in advance would be to try and help secure a loan before the lockup period ends. But that's seen as an even more complicated option, with language in the merger agreement that appears to explicitly prohibit Trump from using the shares as collateral.\nIn any case, Trump is now a direct participant in public markets for the first time since the early 2000s, which he has courted throughout his career with mixed success.\nProfessor Rodrigues notes that the tighter scrutiny Trump will be subject to, whether or not he tries to waive the lockup procedure, could result in a different kind of scrutiny of Trump and his business practices with public shareholders now involved.\n\"I won't say that different rules apply, but there's a lot more attention,\" she says.\nBen Werschkul is Washington correspondent for Yahoo Finance.\nClick here for politics news related to business and money\nRead the latest financial and business news from Yahoo Finance","kind":"highlight","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":"4.29.3","shortVersion":"4.29.3","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/2422999228"}