Shareholders of Trump’s social network approve $5.7 billion merger deal

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(Reuters) – Former U.S. President Donald Trump could make a big profit from his social media company after investors green-lighted a proposed $5.7 billion merger .

The deal values ​​Donald Trump’s stake in the company that owns his social media app Truth Social at around three billion dollars. A boon for the former American president struggling with the American justice system in the context of several proceedings initiated against him.

Shareholders of Digital World Acquisition Corp, the special purpose acquisition company (SPAC) that plans to take Trump Media & Technology Group (TMTG) public through a merger, have voted in favor of the deal Friday.

Former Digital World CEO Patrick Orlando and former Donald Trump associates Andy Litinsky and Wes Moss separately filed a lawsuit to block the merger. They claim that their role in setting up this transaction entitles them to more shares.

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The deal is also expected to see TMTG benefit from a vital cash injection of $300 million. The social media group posted a loss of $10.6 million in the first nine months of 2023 and financed itself by borrowing $40.7 million.

(Reporting Helen Coster and Svea Herbst-Bayliss, French version Alban Kacher)


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