From Social Media to the Stock Market: Inside Trump’s Media Company’s IPO Success

Stock market debut of Donald Trump’s media firm sees substantial growth

The much-anticipated IPO of Donald Trump’s media company, Trump Media & Technology Group, has finally come to fruition, with shares soaring in opening trading. Each share surpassed $70, giving the company a market value of over $9 billion. This milestone will bring in over $200 million for the company and give the former president a stake worth more than $5 billion.

However, analysts are questioning the valuation of the company, as Truth Social, Trump Media’s flagship platform, only generated $3.3 million in revenue in the first nine months of last year, resulting in losses of nearly $50 million. Despite claiming 8.9 million created accounts since its launch in 2022, it is unclear how many are active users. Trump, who owns more than half of the company’s shares, is currently unable to sell his holdings for at least six months due to legal restrictions.

The company’s board, which includes allies such as one of Trump’s sons, could potentially change this rule to allow him access to his windfall immediately. However, analysts believe this is unlikely to happen soon. The merger between Trump Media and Digital World Acquisition Corp., a shell company created to take a company public, was first announced in 2021. Delays due to government investigations were finally resolved earlier this year, enabling the transaction to move forward.

The majority of Digital World shareholders were individual investors, many of whom were reportedly Trump supporters. This successful listing on the stock market marks a significant milestone for Trump Media despite lingering questions about the company’s actual value and operational performance.

Trump Media & Technology Group’s shares surge on debut

Shares in Donald Trump’s media company have surged as it formally debuted on the stock market today.

Each share passed $70 in opening trading

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