#Trump’s allies & company execs will also be granted bundles of shares in the new company that could be worth millions. But trading on the #stockmarket will also open the company to more public scrutiny, & any drops in share prices would affect the value of those stakes.

Critics have said #TrumpMedia is a “#MemeStock” w/a >$6B valuation they say is out of sync w/its financial outlook. TrumpMedia lost $49M in the first 9 months of last yr & brought in just $3.4M in revenue, per #DWA #SEC filing.

The vote Fri by investors in #DWA authorized the #SPAC, to merge w/ #TrumpMedia & #Tech Grp as part of a process that will avoid a more traditional #IPO.

#Trump will own ~60%, which at DWA’s current share price would be worth ~$3.3B. He & other investors could earn tens of millions more shares through an “earnout” provision tied to the stock’s performance, DWA said in an #SEC filing.

The merger will net TrumpMedia $300M that DWA initially raised from investors.

#law #finance #SocialMedia

After #Trump was booted from the #birdsite following the #Jan6, 2021, #insurrection, 3 men played pivotal roles in building & promoting #TrumpMedia as an online challenger [🤣] against the “cancel culture” of #BigTech: #AndyLitinsky & #WesMoss, fmr “Apprentice” contestants who co-founded the company & launched Truth Social; & #PatrickOrlando, who as chief exec of #DWA, a #SPAC [#BlankCheck], offered Trump’s company a path to investor #cash.

#law
https://masto.ai/@Nonilex/112130283180375331