(qlmbusinessnews.com Thurs. 25th April, 2024) London, UK —
Trump Media Bonus: Ex-President Scores $1.2 Billion Amid Stock Plunge
Former US President Donald Trump is set to receive a bonus worth a staggering $1.2 billion for the performance of Trump Media & Technology Group (TMTG) stock, despite its recent plunge in value.
The bonus comes as Trump Media & Technology Group's shares, the parent company of Truth Social, managed to stay above a designated price floor, triggering an “earn-out” windfall for Trump. This windfall boosts the estimated value of his stake in the company to a whopping $3.7 billion.
Trump became eligible for the bonus if TMTG's stock traded above $17.50 per share for 20 days out of any 30-day period within the first three years of its stock market debut. This milestone was met as the stock closed at $32.57 on Tuesday.
The shares in Trump's social media venture have provided him with significant financial support amidst mounting legal challenges, including approximately $500 million in legal penalties from civil fraud, defamation, and sexual abuse cases. Although Trump is restricted from selling his stock until September due to a lockup agreement, the fluctuating value of the shares has intermittently placed him among the world's wealthiest individuals on paper.
However, despite the initial hype surrounding Trump Media's landing on the Nasdaq stock exchange, the company's stock value has seen a sharp decline since its debut. While it initially reached nearly $80 per share on its opening day, subsequent weeks witnessed fluctuations and a downward trend.
CEO of Trump Media, Devin Nunes, has suggested that short sellers may have contributed to the stock's volatility, potentially manipulating its value. Last week, the stock plummeted by 12% following the announcement that the company might issue millions of additional shares in the future. Even amidst these challenges, the stock's performance allowed Trump to qualify for his earn-out shares.
The company has also faced political scrutiny regarding its financial backers, with calls for investigations into allegations of influence peddling. Reports revealed that a Russian-American businessman, under federal criminal investigation, played a role in supporting the company.
Truth Social, launched in 2022, has served as Trump's personal platform to communicate with his supporters. Despite its relatively small user base compared to established social networks, such as X (formerly Twitter), the platform has gained traction among right-wing users.
Meanwhile, Trump is currently facing a trial in a Manhattan courtroom, with prosecutors accusing him of seeking to undermine the 2016 presidential election through illegal hush-money payments related to his affair with adult film star Stormy Daniels. Trump's defense maintains his innocence against all 34 felony counts of falsifying business documents, marking the first criminal trial of a former US president in history.
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