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Former President Donald Trump’s returning Wall Street on the verge of success

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Former President Donald Trump’s returning Wall Street on the verge of success

Months after leaving the White House, former President Donald Trump is making a comeback to Wall Street with a multi-billion dollar stake in a publicly traded reality company. The controversial merger between Truth Social owner Trump Media & Technology Group and a blank check company has received approval from US regulators, with the Securities and Exchange Commission removing the final hurdle holding up the deal. This paves the way for Trump Media to become a publicly traded company, making Trump a majority shareholder with a potential stake worth $4 billion.

Digital World Acquisition Corp. announced on Wednesday that the SEC had approved the merger, with a date for the shareholder vote set to be decided on Friday. Despite the extensive delays over two years, it seems that the deal is finally nearing its goal, according to Jay Ritter, a finance professor at the University of Florida.

Shares of Digital World soared by 15% after the milestone, with its stock price currently valuing the company at approximately $8 billion based on a fully diluted basis. However, there are doubts about the inflated valuation of this media company, with Trump Media’s limited revenue of $1.1 million during the third quarter and a loss of $26 million in the same period, raising concerns.

Past fears from Trump Media’s accountants have indicated that it might not survive without the completion of the merger with Digital World. The approval from the SEC is celebrated by Trump Media, with Trump Media CEO and former Republican congressman, Devin Nunes, describing a vision to accelerate the building of a free speech highway outside the dominance of Big Tech.

Trump’s plan to return to Wall Street has stirred mixed reactions from experts. Whether or not Trump will be able to capitalize on the potential wealth created by this merger remains to be seen, especially since the new company’s fate will be closely associated with the former president. Investment figures are also wary of betting on an entity with poor revenue and high valuation, much of which is based on the charismatic figure of Trump himself.

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For now, the fate of the merger lingers on the upcoming shareholder vote, where approval is expected to restructure this Wall Street revival and value billions.

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