Trump tightens grip on his social media company

According to regulatory filings late on Tuesday, former U.S. President Donald Trump will be able to retain the ownership of his newly launched social media venture even if he chooses to make another run for the presidency or is convicted by prosecutors who are scrutinizing his business dealings.

Last week, Trump had said, his TRUTH Social venture would be created by merging the Trump Media and Technology Group (TMTG) with a blank-check company called Digital World Acquisition Corp.

Regulatory filing shows Trump being referred to as the “company principal,” even though the exact size of his stake in the company isn’t disclosed.

According to a latest clause that has been inserted designed to shield his stake in the venture, Trump will be able to keep his ownership in TMTG, even if the company faces a “material disruptive event”.

“In order to maximize business continuity and to minimize, mitigate, or eliminate any negative impacts on the Company from a Material Disruptive Event, the Company Principal’s ownership and position in the Company shall be structured in such a way as to eliminate the need for restructuring of ownership or changes in position were a Material Disruptive Event to occur,” states the regulatory filing.

Trump had hinted for a run for the US presidency for a third time in 2024.

As part of an earnout clause in the deal, TMTG shareholders will receive an additional 40 million shares, based on the share price performance of DWAC, which on Tuesday closed down nearly 30% but are still trading well above the SPAC’s IPO price of $10 a share.

TMTG’s merger with the blank check company had essentially delivered a potential windfall of $420 million for DWAC’s main backer, Patrick Orlando, who has been trying for a decade to reinvent himself as a serial dealmaker.



Categories: Creativity, Entrepreneurship, HR & Organization, Strategy

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