Benchmark Met, .25 Billion Bonus Secured
Former President Donald Trump is set to receive a substantial “earnout” bonus, amounting to 36 million additional shares of Trump Media, the parent company of the Truth Social app. This bonus, estimated at over .25 billion based on Monday’s share price, is contingent upon Trump Media’s stock hitting a benchmark of .50, which was convincingly achieved on Monday.
Trump’s Wealth Ascends
The additional shares will significantly increase Trump’s stake in Trump Media to a remarkable 114.75 million shares, constituting over 87% of the company. At the current share price, Trump’s total holdings would be valued at an astounding billion.
Earnout Mechanics
The earnout shares are part of an agreement reached during the merger between Trump Media and Digital World Acquisition Corp., which paved the way for Truth Social’s public debut. These shares are awarded as incentives to incentivize key figures within the company.
Stock Price Volatility
While Trump Media’s stock initially surged to nearly per share, it has subsequently plummeted to around .50, eroding the company’s market cap by billions of dollars. Nevertheless, the benchmark achievement for the earnout bonus remains within sight, with Tuesday being the 20th trading day out of the required 30, and the stock unlikely to fall below the threshold.
Legal Battles and Political Prospects
Trump’s earnout bonus comes as he faces legal challenges in New York City, attending opening statements in a hush money trial. Meanwhile, he appears poised to become the presumptive Republican presidential nominee, which could further impact Trump Media’s fortunes.
Key Takeaway
The issuance of the earnout shares to Trump underscores the meteoric rise of Trump Media and Truth Social, despite facing legal scrutiny and market volatility. Trump’s massive stake in the company solidifies his influence over the platform and its future, potentially fueling political aspirations and generating significant financial rewards.
Data sourced from: cnbc.com
