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Former President Donald Trump is in line for a significant windfall as his social media company, Truth Social, secured approval for a Wall Street listing. The platform, owned by Trump Media & Technology Group (TMTG), has been given the green light by shareholders of Digital World Acquisition Corp to merge with the listed cash shell, paving the way for Truth Social’s entry into the Nasdaq exchange as early as next week.
With the merger, Trump is poised to have a majority stake in the combined company, estimated to be valued at around $3.5bn. This comes at a crucial time as Trump faces a substantial legal bill, with reports indicating that he is scrambling for funds to settle a $464m fraud fine.
While the news of Truth Social’s upcoming listing and Trump’s potential payday is significant, it is not without controversy and challenges. Despite a loyal user base, Truth Social has struggled to attract a wider audience, with user numbers dwindling and traffic plummeting. In contrast to the 860,000 active accounts on Truth Social as of November, mainstream social media platforms boast significantly larger user bases.
The platform has garnered praise from loyal users, such as 28-year-old Nick Mirtschink and retiree Bree Duke, who laud the interface and regularly engage with Trump’s posts, termed “truths.” Duke, a regular user, expressed her enthusiasm for the app, describing how she accesses it on both her phone and TV. Similarly, Mirtschink, an avid user, revealed his substantial time spent on the platform. Their testimonials reflect a dedicated user base that values the content and engagement opportunities provided by Truth Social.
Amid Trump’s avid supporter base and robust engagement on the platform, the broader challenge lies in expanding the user base beyond loyalists. With mainstream social platforms already dominating the market, Truth Social faces significant hurdles in appealing to a wider audience. Additionally, the company’s financial and legal troubles have raised concerns, particularly the unresolved lawsuits from former business partners and an $18m settlement related to fraud charges over the merger plan.
The impending Wall Street listing for Truth Social and the significant stake Trump is set to hold in the company underscore the complexities and potential successes in the realm of social media and finance. As the platform prepares for its Nasdaq debut, it faces the twin challenges of capitalizing on its dedicated user base while seeking to expand its reach to a broader audience. The outcome of this endeavor will not only impact the financial fortunes of Trump and the company but also shed light on the evolving landscape of social media in an increasingly competitive market.
