With Trump Media Stock Cratering, Donald Trump Has a Decision to Make
The New York Times
A lockup provision has kept him from being able to sell Trump Media shares. With that prohibition about to expire, the price is down more than 70 percent from its peak.
Donald J. Trump has a big decision to make.
In 10 days, the former president will be free to sell his shares in Trump Media & Technology Group — the publicly traded parent company of Truth Social, his social network and main online megaphone. A provision that barred him from selling any of his 115 million shares will expire on Sept. 19.
His stake is worth $2 billion, an enticing bounty given that Mr. Trump invested only a few million dollars into Trump Media, which was formed just weeks after he left the White House in early 2021. But his shares are worth a lot less than they were in March, when Trump Media made its Wall Street debut.
A sale by Mr. Trump would have big implications, both financial and political. It almost certainly would tank the price of Trump Media’s volatile stock, decreasing the value of whatever remains of Mr. Trump’s stake. An ensuing slump in the share price might also leave the company’s more than 600,000 shareholders — many of them supporters of the former president and users of the platform — feeling sabotaged and alienated.
“He has no reason to sell, because he doesn’t need the money,” said Greg Bowden, a 66-year-old self-described day trader and supporter of Mr. Trump who said he owns shares of Trump Media. “I don’t think he’s that stupid to hurt his loyal base of supporters.”
Many investors in Trump Media are already deeply in the red, thanks to a sharp drop in the share price over the past few months. But the presence of a large seller like Mr. Trump could swamp buyers in such a thinly traded stock.
It is a sharp pivot away from the cautious approach of the traditional corporate treasury, normally charged with safeguarding cash rather than chasing higher returns.
Fleeing fraud charges, Samuele Landi evaded extradition treaties, dabbled in crypto, procured diplomatic credentials and took advantage of all the offshore world has to offer.
The companies argue in a lawsuit that the process of reviewing the transaction was corrupted by politics.
After overcoming pariah status at the end of the last century, South Korea must learn what caused the catastrophe on Dec. 29 and what lessons to draw from it.
South Korea’s leading low-cost carrier, heavy with debt and its stock already near record lows, is now facing intense public and government scrutiny.
Japanese companies needing to grow have sought out American deals. Experts say that will not change even after Biden’s rejection of Nippon Steel’s takeover attempt.