Trump Media's DWAC Merger Receives Regulatory Green Light Opening Path To A $4 Billion Stake for Donald Trump

The financial partner of Trump Media & Technology Group announced that it has received approval from securities regulators, clearing the way for a long-awaited merger. This merger could potentially grant former President Donald Trump a stake valued at nearly $4 billion.

Digital World Acquisition Corp. (DWAC), a special-purpose acquisition company, disclosed on Thursday that the Securities and Exchange Commission has given the green light for its proposed merger with Trump Media. DWAC intends to schedule a shareholder vote on the merger date within the next two days.

The successful navigation of this regulatory hurdle represents a significant triumph for Trump and his media venture, particularly the conservative-leaning Truth Social platform. Despite being in progress since October 2021, the merger had encountered delays due to regulatory issues and other obstacles.

The merger aims to provide Trump Media with the necessary capital to expand its operations. However, as the merger process dragged on, DWAC refunded hundreds of millions of dollars in financing commitments to investors.

Upon completion of the merger, Trump is poised to hold approximately 79 million shares in the newly formed entity, representing up to 69% ownership of the combined company, according to a DWAC filing. Based on DWAC's stock price on Thursday, this stake could be valued at up to $3.95 billion.

Trump faced a significant setback on Friday as the judge overseeing his civil fraud trial barred him from managing the New York-based company, a central entity in his global business network, for three years. Trump and The Trump Organization were also ordered to pay penalties totaling $354 million, marking one of the most severe corporate sanctions in New York's history.

Following this ruling, shares of DWAC experienced a 4% decline. The potential windfall from the merger could offer Trump a means to settle the hefty fines imposed in his New York fraud case without resorting to liquidating his business assets and properties.

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