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WP: Trump Media co-founders sue company, alleging a scheme to dilute shares

China

By China
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China

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Trump Media co-founders sue company, alleging a scheme to dilute shares

 

The co-founders of former president Donald Trump’s media company filed a lawsuit Wednesday, claiming that Trump and other leaders had schemed to deprive them of a stake in the company that could be worth hundreds of millions of dollars.

 

The case could complicate a long-delayed bid by Trump Media & Technology Group, owner of the social network Truth Social, to merge with a special purpose acquisition company called Digital World Acquisition and become a publicly traded company.

 

That merger deal, which could value Trump’s stake in the company at more than $3 billion, would offer the former president a financial lifeline at a time when he is facing more than $454 million in penalties from a civil fraud judgment this month in New York.

 

Representatives for Trump, Trump Media and Digital World did not immediately respond to requests for comment.

 

Click on the link for the full article

 

By all means delay the ability of the company to go public so that Trump doesn't have access to potentially $3 billion.

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China

China

Posted
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If you read the Risks section of DWAC's amended S4 filing it has a couple of lovely sections:

 

Quote

A number of companies that were associated with President Trump have filed for bankruptcy. There can be no assurances that TMTG will not also become bankrupt.

Entities associated with President Trump have filed for bankruptcy protection. The Trump Taj Mahal, which was built and owned by President Trump, filed for Chapter 11 bankruptcy in 1991. The Trump Plaza, the Trump Castle, and the Plaza Hotel, all owned by President Trump at the time, filed for Chapter 11 bankruptcy in 1992. THCR, which was founded by President Trump in 1995, filed for Chapter 11 bankruptcy in 2004. Trump Entertainment Resorts, Inc., the new name given to Trump Hotels & Casino Resorts after its 2004 bankruptcy, declared bankruptcy in 2009. While all of the foregoing were in different businesses than TMTG, there can be no guarantee that TMTG’s performance will exceed the performance of those entities.

 

A number of companies that had license agreements with President Trump have failed. There can be no assurances that TMTG will not also fail.

Trump Shuttle, Inc., launched by President Trump in 1989, defaulted on its loans in 1990 and ceased to exist by 1992. Trump University, founded by President Trump in 2005, ceased operations in 2011 amid lawsuits and investigations regarding that company’s business practices. Trump Vodka, a brand of vodka produced by Drinks Americas under license from The Trump Organization, was introduced in 2005 and discontinued in 2011. Trump Mortgage, LLC, a financial services company founded by President Trump in 2006, ceased operations in 2007. GoTrump.com, a travel site founded by President Trump in 2006, ceased operations in 2007. Trump Steaks, a brand of steak and other meats founded by President Trump in 2007, discontinued sales two months after its launch. While all these businesses were in different industries than TMTG, there can be no guarantee that TMTG’s performance will exceed the performance of these entities.

 

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Fergasun

Fergasun

Posted
Posted

Presidency for sale!!!! Get your Presidency for sale here!!!! Just invest in Truth Social!!!! 

 

It is so evil.  But whoever came up with this plan is a genius.  No need to fund his campaign.  Just buy DJT stock!  

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China

China

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2 hours ago, Fergasun said:

Presidency for sale!!!! Get your Presidency for sale here!!!! Just invest in Truth Social!!!! 

 

It is so evil.  But whoever came up with this plan is a genius.  No need to fund his campaign.  Just buy DJT stock!  

 

On the contrary.  All the money from DJT stock will go directly into Trump's pocket.  It won't go towards his campaign.  He hasn't spent a dime of his own money campaigning since 2016.

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Corcaigh

Corcaigh

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I'm still surprised that SPACs are legal. Investors have no real idea what they are investing in, just that the SPAC will buy something(s) in the future. 

 

It almost seems that they were created to get around the oversight that companies have to go through when going doing an IPO. Essentially the investors have no protections and little to no visibility of conflicts of interest.

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PokerPacker

PokerPacker

Posted
Posted
2 hours ago, Corcaigh said:

I'm still surprised that SPACs are legal. Investors have no real idea what they are investing in, just that the SPAC will buy something(s) in the future. 

 

It almost seems that they were created to get around the oversight that companies have to go through when going doing an IPO. Essentially the investors have no protections and little to no visibility of conflicts of interest.

Whenever it comes to rich people exploiting things, I'm never surprised it's legal.

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PleaseBlitz

PleaseBlitz

Posted
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https://www.cnn.com/2024/04/01/media/truth-social-trump-media-stock-losses/index.html

 

Trump’s net worth plunges $1 billion as his media stock tumbles

 

Quote

Shares of Truth Social owner Trump Media & Technology Group plunged Monday after the company disclosed that it lost more than $58 million and generated very little revenue in 2023. Former President Donald Trump is the company’s majority shareholder, and his net worth tumbled by more than $1 billion Monday as a result.

 

The figures underscore why some experts warn Trump Media’s multibillion-dollar valuation defies logic and is reminiscent of the meme stock craze.

 

In a regulatory filing on Monday, Trump Media said it lost $58.2 million in 2023, compared with a profit of $50.5 million in 2022.

 

The Truth Social owner generated just $4.1 million in revenue, although that was up from $1.5 million in 2022.

 

Not only that, but revenue tumbled 39% year-over-year in the fourth quarter to just $751,500. That’s not what investors want to see from any start-up, especially one valued at these levels.

 

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Bang

Bang

Posted
Posted

Ah, don't worry. Some judge will cut whatever enormous fines and judgments he has down to enough he can easily collect by selling actual* pieces of the Shroud of Turin with the writings of Sean Hannity on them to his mob of idiots.

 

~Bang

 

 

 

*not actual

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Skintime

Skintime

Posted
Posted
1 hour ago, Larry said:

Trump borrowed $8M from Russia, in exchange for a promise that he would pay them back in stock?  

 

I wonder if he "paid them back" before it tanked. 

Hope not so they have him offed

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