• Fri. May 24th, 2024

Newly Trading Company Surges on First Day: How Trump Media’s Merger Affected the Stock Price

BySamantha Nguyen

Mar 27, 2024
Trump Media & Technology Stock Surges in Debut of Truth Social Ownership

Following its merger with Digital World Acquisition Corp (DWAC), Trump Media & Technology Group stock surged on its first day of trading. The newly combined company is now trading under the stock ticker “DJT,” which represents former President Donald J. Trump’s initials.

On Monday, DWAC shareholders approved the merger, leading to a surge in DWAC’s stock price. Plans were made to begin trading under the new stock ticker on Tuesday morning. Shares of Trump Media & Technology Group experienced a 38% increase to $69.10 by 11:20 a.m. ET on Tuesday, rising as much as 59% in the first half-hour of trading.

Former President Donald Trump holds approximately 80 million shares in the company, valued between $3 billion and $4 billion at the time of the merger announcement. The value is expected to increase significantly after the first day of trading on the Nasdaq.

The merger process began in October 2021 and was delayed due to regulatory investigations into whether DWAC misled investors on talks with Trump Media. The company has not made any changes to the merger terms, including a six-month lock-up period that prevents shares held by the former president and major stakeholders from being sold.

Some have speculated that Trump Media’s decision to go public is aimed at improving Trump’s financial situation as he faces mounting legal fees and penalties. These costs may escalate as the presumed Republican presidential nominee continues to navigate other legal challenges.

By Samantha Nguyen

As a content writer at newsskio.com, I weave words to craft compelling narratives that captivate readers and bring stories to life. With a keen eye for detail and a passion for storytelling, I strive to create engaging and informative content that resonates with our audience. Whether I'm delving into the latest news trends or exploring unique angles on various topics, my goal is to deliver quality content that informs, entertains, and inspires. Join me on this journey as we uncover the news stories that matter most.

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