The special purpose acquisition company (SPAC) tied to Donald Trump's DWAC stock could more than triple the net worth of the former president of the United States, from $2.5 billion to $7.3 billion, Business Insider reports.
Trump is reportedly set to receive a 58% stake in Trump Media & Technology Group (Digital World Acquisition Group; ticker DWAC) Bloomberg says. The 45th president of the United States' net worth is currently $2.5 billion, according to the Bloomberg Billionaires Index. The deal will more than triple that.
This is only the beginning -- billions more will line Trump's pockets, Bloomberg says. If the meteoric rise of DWAC on its initial public offering (IPO) last week is any indication, the investing public is keen on joining a Trump-backed venture. DWAC opened at $10 and topped $100 midday Monday, Oct. 16, qualifying it as a "meme stock," according to Business Insider.
Digital World Acquisition Group's press release estimates that its initial value will be $875 million "with a potential additional earnout of $825 million in additional sahres [at the valuation they are granted]".
Bloomberg arrived at the $4.8 billion that would go to Trump based on a $193 million DWAC trust account and a profits incentive split of 42% that has been promised to the owners of the SPAC; the remaining 58% would be earmarked for Trump.
Notable hedge fund investors interested in DWAC and the SPAC include: Highbridge Capital Management, Lighthouse Partners, K2 Principal Fund and Saba Capital Management. Each of these hedge funds, Business Insider says, made a killing on DWAC.
The centerpiece of Trump's new media company is a social media platform called "Truth Social," a play off of Trump's claim that the mainstream media only issues what he calls "fake news." Trump is now saying that the purpose of all of these efforts is to "save America."
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