Trump moves his $4 bln stake in DJT into a revocable trust and stock falls

Dow Jones12-20 20:25

MW Trump moves his $4 bln stake in DJT into a revocable trust and stock falls

By Steve Gelsi

President-elect transfers 114.75 million shares into structure that may speed transfer of wealth

Trump Media & Technology Group Corp.'s stock fell about 6% in premarket trading on Friday after Donald J. Trump transferred his entire $4 billion stake in the company into a revocable trust, according to filings.

Trusts are often set up to help avoid the public probate court process to distribute wealth to beneficiaries. They also may help minimize estate taxes.

The president-elect moved 114.75 million shares, or 53% of Trump Media & Technology stock $(DJT)$ into the Donald J. Trump Revocable Trust Dated April 7, 2014, an entity created to hold his assets, according to a securities filing.

Trump's son, Donald J. Trump Jr. - who has been running the family business - holds the voting and investment power in the stock, while the elder Trump indirectly owns the stock.

The move comes after Trump said on Nov. 8 he had no plans to sell his stake in Trump Media & Technology, which owns Truth Social, Trump's media platform.

Trump is not on the board of Trump Media & Technology, but he's been the company's largest shareholder.

The company remains tiny, with roughly $1 million in revenue in its third quarter. But its current market value is $7.7 billion, as investors bought up shares as a proxy for Trump's popularity that propelled him to victory in the November presidential election.

The stock has doubled this year and closed at $35.41 a share on Thursday.

Trump has named Trump Media & Technology Chief Executive Devin Nunes as chairman of the President's Intelligence Advisory Board, which is made up of people who have not worked in the federal government.

-Steve Gelsi

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(END) Dow Jones Newswires

December 20, 2024 07:25 ET (12:25 GMT)

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