Trump Aims at a Potential $1.3 Billion Gain Amid $4.5 Billion Loss in SPAC Deal

Trump Media & Technology Group Corp. has lost a lot of money in a short time, around $4.5 billion. But even with this loss, there’s still a chance for former President Donald Trump and others in the company to get a big bonus.

Trump and co-founders might earn $1.3 billion despite stock volatility. (Credits: Shutterstock)

They might get 40 million new shares if the stock stays at a certain price, even though it dropped by 59% from its highest point.

This kind of deal is common in special company deals and could make the current shares worth less, but it means big money for insiders if the stock stays above $17.50 for a while.

Challenges, Wealth, and Legalities

Trump and his co-founders could still make a lot of money, about $1.3 billion, even though the stock price keeps changing.

Legal issues and financial struggles complicate Trump Media’s future and stock performance. (Credits: CNBC)

The deal they made protects them a bit: they can still get some money even if the stock price drops below the starting goal, as long as it stays above certain levels.

This deal shows how complicated money stuff can be and how much money they could make on paper, but they can’t get the cash right away. They have to wait for six months and be careful not to make the market go crazy by selling too many shares at once.

Financial Struggles and Legal Battles

People are talking about Trump Media’s worth and its stock, which is like what happened with meme stocks in 2021.

The speculative nature of Trump Media’s stock sparks comparisons to the 2021 meme stock phenomenon. (Credits: John Minchillo/AP)

The company doesn’t seem financially healthy, losing over $55 million last year and not making much money.

But its value on the stock market is high anyway. Also, Trump is dealing with legal problems, like a lawsuit from co-founders who say he’s trying to make their shares worth less, and he has some criminal trials coming up.

All these things make it hard to predict what will happen to the company and its stock.

Sajda Parveen
Sajda Parveen
Sajda Praveen is a market expert. She has over 6 years of experience in the field and she shares her expertise with readers. You can reach out to her at [email protected]
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