24 Oct 2021
Trump’s SPAC Could make him a Billionaire with Meme-stock Frenzy
The Index Today
Trump Media & Technology, Trump’s growing media business is expected to gain a massive boost from meme-stock mania as it plans to go public through a special purpose acquisition company. Retail investors are lining up as value of the new venture crosses $8.2 billion.
According to released figures, Donald Trump will have a 50% ownership of the firm with an estimated net worth of $2.5 billion. However, people remain skeptical of the gains as his post-presidency months were less than kind.
Trump’s assets including his Washington hotel are still up for sale after two years of being on the market. His Manhattan tower has reported increasing number of vacancies. To make things worse, the CFO of Trump Organization recently had his name tarnished over allegations of tax fraud. Donald Trump’s net value has decreased more than $500 million since taking office.
The former president has now released his social media platform called Truth Social which was hacked soon after. Kristi Marvin, chief executive of research firm SPAC said, “We have no financials. We have no business plan. We don’t know how they go to the valuation. We have no information. That’s the fundamental problem.” According to the official website of Trump’s Media, his business plans will compete with Amazon, Google’s cloud and more.
According to a press release, the firm is expected to have an initial value of $875 million based on a share value of $10. The owners of SPAC will receive around 42% the combined company if the deal is closed. This means that Trump will own 58% as partner with a stake worth $4.8 billion. This digits have been based on Digital World’s evaluation.