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Donald Trump's media company may go public

Natasha Kumar By Natasha Kumar Mar22,2024

Donald Trump's media company may go public

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Former President Donald Trump in Richmond, Virginia, on March 2.

Agence France-Presse

Donald Trump's media company obtained Friday a green light to enter the New York Stock Exchange, which will unlock billions of dollars for the former American president, who must provide a guarantee on Monday that he will pay a high legal bond.

The Republican presidential candidate in November is liable to seizure of his assets if he does not give the New York State justice system a guarantee that he will pay by March 25 nearly half a billion US dollars in civil reparations to which he was ordered in February.

This windfall could come from his company Trump Media & Technology Group (TMTG), which will merge with a listed vehicle after a favorable vote on Friday at a general meeting.

This market entry should offer a breath of fresh air to the 77-year-old businessman and political tribune, to the situation financially precarious.

The real estate developer's lawyers say they are unable to provide a 120% guarantee of some half a billion dollars in fines, an essential guarantee to suspend the resounding judgment handed down on February 16 in a Manhattan civil court.

Donald Trump faces justice

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Donald Trump faces justice

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At the end of prosecutions initiated in 2022 by the Attorney General of the State of New York, Letitia James, Donald Trump as well as his sons Eric and Donald Jr. were sentenced that day by Judge Arthur Engoron to 464 million US dollars in fines and interest for fraud, notably for lying in the 2010s about the value of the assets of their real estate empire Trump Organization in order to obtain bank loans.

< p class="StyledBodyHtmlParagraph-sc-48221190-4 hnvfyV">TMTG will merge with Digital World Acquisition Corp (DWAC), a listed vehicle, also called SPAC, whose sole purpose is to allow a company to access the stock market more easily than through the traditional route of a proper introduction.

Donald Trump is the main shareholder of TMTG, who will control several tens of millions of shares of the new listed company. According to several estimates, his stake would be valued at more than $3 billion at the current share price.

The TMTG-DWAC agreement provides for a six-month lock-up period during which existing shareholders cannot not sell their securities. However, nothing prevents Donald Trump from offering his securities as collateral to the courts or obtaining a loan based on the value of these shares.

The day of this green light and before the Monday deadline, the former President of the United States attacked the New York justice system.

Neither trial, nor jury, nor crime, nor victim. Just a villainous judge and an attorney general who hates Trump and takes his orders at the White House, he attacked on his Truth Social network, an allusion to Arthur Engoron and Letitia James.

Donald Trump regularly storms against a bogus judgment and an unconstitutional requirement for guarantees imposed by a racist and corrupt prosecutor and by a judge controlled by the Democratic clique.

Letitia James is an African-American judge elected by the Democratic Party and holds a political office and role at the top of the New York public prosecutor's office.

Donald Trump also promised Friday that if he is inaugurated as the 47th president on January 20, [he] will restore the greatness of New York, the Democratic-voting megalopolis.

To win in November against President Joe Biden, he assured he had nearly $500 million in cash, a significant portion of which is intended to be used in [his] campaign.

So what will happen on Monday if the billionaire does not provide a guarantee of payment of his legal bail?

A humiliation and a huge problem, summarize Carl Tobias, professor of law at the University of Richmond, and former prosecutor Andrew Weissmann.

For Carl Tobias, if Donald Trump exhausts his appeals, he could sell his real estate […], try to obtain a bank loan or even declare personal bankruptcy.

James could also try to seize money he holds in New York and some of his real estate, such as the Trump Tower on 5th Avenue and a building on Wall Street.

< p class="StyledBodyHtmlParagraph-sc-48221190-4 hnvfyV">The tabloid New York Post thought Thursday that Donald Trump would let Letitia James seize Trump Tower or her golf course in upscale Westchester County, north of the city.

Natasha Kumar

By Natasha Kumar

Natasha Kumar has been a reporter on the news desk since 2018. Before that she wrote about young adolescence and family dynamics for Styles and was the legal affairs correspondent for the Metro desk. Before joining The Times Hub, Natasha Kumar worked as a staff writer at the Village Voice and a freelancer for Newsday, The Wall Street Journal, GQ and Mirabella. To get in touch, contact me through my 1-800-268-7116

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