Letitia J. James, New York Attorney-General, began taking steps on Thursday to seize assets owned by former President Donald Trump. She filed for judgments after a civil fraud verdict of more than $450 million. James’ move indicated that she aimed to seize Trump’s golf course, and his private estate known as Seven Springs north of Manhattan.
Trump was unable to post the bond required to proceed to the appeals procedure in the wake of this ruling. He proposed posting an appeal bond of $100 million instead of the full $464 million. The judge rejected Trump’s offer despite his lawyers’ claims that he could not raise the huge sum of money before the deadline.
Trump’s finances could be improved by $3.5 billion as a result of a merger proposed between Truth Social’s parent and the publicly listed Digital World Acquisition Corp. Trump launched Truth Social, a conservative platform for social media, after his infamous account, known as X on Twitter and other platforms, was banned after the riots of January 6th.
After a lengthy regulatory approval process completed a little over a month back, DWAC shares are preparing to vote on Friday about merging with Trump Media & Technology Group. Digital World is a Special Purpose Acquisition Company, which functions as a vehicle for taking private companies public without the usual Initial Public Offering.
The merged company would be rebranded Trump Media & Technology Group Corp. and represented by the DJT stock ticker, which reflects the initials of the former president. Trump could earn a lot of money from this deal, as he will own approximately 58 percent and 78.8 million shares. Trump’s stake is based on DWAC’s current stock valuation. This could result in a windfall of up to $3.5 billion.
A “lock-up provision” prevents Trump and other major shareholders from selling their shares for six months after the merger. This restriction is used to stop stock dumping, which could negatively impact the value of shares.
The proposed deal may be a positive for Trump, but he will still not be able to use the stock assets as collateral or for loans until the lock-up expires. A change in this provision by the new board of the company would be subject to legal challenges, and the shareholders’ benefit would have to be a strong argument.
There are still doubts about the success of Trump Media Group in the long term due to Truth Social’s struggle to compete with larger platforms for user engagement and advertising. The company’s valuation is questioned by its modest revenues and anticipated losses.
This financial reality raises questions about the sustainability of the company and the possibility of Trump’s substantial financial gains. Trump’s decision to sell stock after the lockup period may also pose risks, such as a possible devaluation or negative effects on remaining stocks. Trump faces a complicated financial and legal environment due to the ongoing legal fights and campaign financing needs.
