• Investing
  • Stock
Round Table Thoughts
  • Economy
  • Editor’s Pick
Home Editor's Pick Donald Trump set to receive $1.25 billion worth of Trump Media stock in DJT earnout bonus
Editor's Pick

Donald Trump set to receive $1.25 billion worth of Trump Media stock in DJT earnout bonus

by April 23, 2024
by April 23, 2024 0 comment
Share
0
FacebookTwitterPinterestWhatsapp

Former President Donald Trump is poised to receive an additional 36 million shares of Trump Media Tuesday — an “earnout” bonus worth more than $1.25 billion, at Monday’s price.

Trump Media, which owns the Truth Social app, was trading at around $35 per share mid-day Monday.

But that price is twice the $17.50 benchmark minimum share price, which the DJT ticker has to hit by the close of trading Tuesday, for Trump to become eligible for the extra so-called earnout shares.

That earnout is contingent on the benchmark being hit for 20 trading days within a 30-trading day period, beginning March 25. Tuesday is the 20th day and it is very unlikely that DJT will fall below the benchmark price by the end of that day.

Trump Media’s share price was down about 1.8% as of 12:17 p.m. ET

The 36 million additional for Trump would be added to the 78.75 million shares he already owns, as the company’s majority shareholder.

When the earnout shares are added to his existing stock, Trump’s total stake in Trump Media would be worth more than $4 billion on paper, at $35 a share.

Trump Media has the power to issue a total of 40 million earnout shares, as part of the merger deal that combined it with a publicly traded shell company, Digital World Acquisition Corp.

“Assuming the full issuance of the Earnout Shares, President Donald J. Trump will receive 36,000,000 Earnout Shares,” the company said in a securities filing. The filing suggests that some, if not all, of the remaining shares will be issued to Trump Media’s executive officers as part of an incentive plan.

Trump was in a New York City courtroom Monday, listening to opening statements in his criminal hush money trial. Court resumes on Tuesday for the presumptive Republican presidential nominee.

The merged company, whose full name is Trump Media & Technology Group Corp., began public trading under the DJT ticker on March 26, at an opening price of $70.90 per share.

That price rose to a high of nearly $80 that day, briefly giving the company a market capitalization of more than $9 billion. This was despite having reported a 2023 net loss of $58 million, and just $4.1 million in revenue.

But since then, Trump Media’s share price has plunged. By the close of trading on April 15, the share price had fallen nearly 68% from its opening price.

The stock price rose sharply last week. But as of Monday, Trump Media shares were still trading around 50% lower than the price they debuted at last month, erasing billions of dollars in market capitalization for the company.

Even with a much lower stock price, Trump is almost certain to receive all of his earnout shares.

That’s because the threshold share price at which Trump will receive all 36 million of his earnout shares was set at $17.50. The last time the stock traded at that price was in January, before the Securities and Exchange Commission greenlighted DWAC and Trump Media’s plans to merge.

It remains to be seen if the issuance of the earnout shares to Trump will affect the share price of Trump Media.

Any shares that Trump owns are subject to a lock-up provision that prevents him from selling them in the six months following the merger’s closing date.

While Trump Media’s board could amend that provision, to date, it has not taken any steps to do so.

CNBC asked a company spokeswoman about the expected triggering of Trump’s earnout shares.

She replied, “With more than $200 million in the bank and zero debt, Trump Media is fulfilling all its obligations related to the merger and rapidly moving forward with its business plan.”

This post appeared first on NBC NEWS
You Might Also Like
  • Online retailer Zulily is shutting down
  • Elon Musk’s AI startup now valued at $24 billion after fresh funding
  • Sierra Space CEO leaves as $5 billion company pushes to launch space plane
  • Biden to launch task force to crack down on ‘unfair and illegal pricing’ amid rising inflation
Share
0
FacebookTwitterPinterestWhatsapp

previous post
North Korea runs simulation nuclear counterstrike against foreign enemies
next post
Car insurance rates are nuts right now. Here’s how to lower your bill when cash is tight.

You may also like

GM union workers ratify UAW deal following contentious vote

November 18, 2023

Etsy restores payment processing for some sellers affected by Silicon...

March 16, 2023

UnitedHealth CEO suddenly steps down for ‘personal reasons’

May 13, 2025

Food insecurity worsened after pandemic SNAP aid expired, report finds

June 27, 2023

Peloton to start charging subscribers with used equipment $95 activation...

August 23, 2024

Disney scraps plan for new Florida campus as DeSantis feud...

May 19, 2023

No more leftovers? Tupperware is warning it might go out...

April 12, 2023

Jeep expects to grow plug-in hybrid SUV sales by as...

June 4, 2024

A Big Mac combo for $18? Fast foodies are getting...

February 8, 2024

Microsoft to lay off more employees months after letting 10,000...

July 11, 2023

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Breakouts, Momentum & Moving Averages: 10 Must-See Stock Charts Right Now

      May 31, 2025
    • Leadership Rotation Could Confirm Corrective Phase

      May 30, 2025
    • Run Your Stock Portfolio Like a Pro Sports Team

      May 30, 2025
    • U.S. foreign tax bill sends jitters across Wall Street

      May 30, 2025
    • Amazon taps Xbox co-founder to lead new team developing ‘breakthrough’ consumer products

      May 30, 2025

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be...

      June 27, 2024 2,765 views
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as...

      August 9, 2024 2,472 views
    • 3

      Biden appointee played key role in recruiting Chinese...

      June 25, 2024 2,451 views
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful...

      July 10, 2024 2,432 views
    • 5

      Harris VP pick spent years promoting research facility...

      August 29, 2024 2,308 views

    Categories

    • Economy (7,009)
    • Editor's Pick (2,106)
    • Investing (538)
    • Stock (2,581)

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be revived under new House GOP bill

      June 27, 2024
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as Harris camp blasts ‘lying’ critics

      August 9, 2024
    • 3

      Biden appointee played key role in recruiting Chinese businesses to Delaware: ‘Longtime friends’

      June 25, 2024
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful of Chinese spy threats

      July 10, 2024
    • 5

      Harris VP pick spent years promoting research facility that collaborated with ‘Chinese military company’

      August 29, 2024

    Latest News

    • Breakouts, Momentum & Moving Averages: 10 Must-See Stock Charts Right...

      May 31, 2025
    • Leadership Rotation Could Confirm Corrective Phase

      May 30, 2025
    • Run Your Stock Portfolio Like a Pro Sports Team

      May 30, 2025

    Categories

    • Economy (7,009)
    • Editor's Pick (2,106)
    • Investing (538)
    • Stock (2,581)

    Disclaimer: RoundTableThoughts.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 RoundTableThoughts.com. All Rights Reserved.

    Round Table Thoughts
    • Investing
    • Stock
    Round Table Thoughts
    • Economy
    • Editor’s Pick

    Read alsox

    Court rejects Boeing plea deal tied...

    December 6, 2024

    Digital health companies pummeled by Wall...

    December 26, 2024

    Women’s college basketball final expected to...

    April 6, 2024
    Sign In

    Keep me signed in until I sign out

    Forgot your password?

    Password Recovery

    A new password will be emailed to you.

    Have received a new password? Login here