麻豆影视

World

    • Trump can soon tap his US$2 billion Truth Social fortune. But it won't be easy

    Republican presidential candidate former President Donald Trump, centre, stands on the 18th hole green as he watches the final round of LIV Golf Miami, at Trump National Doral Golf Club, Sunday, April 7, 2024, in Doral, Fla. (AP Photo/Rebecca Blackwell) Republican presidential candidate former President Donald Trump, centre, stands on the 18th hole green as he watches the final round of LIV Golf Miami, at Trump National Doral Golf Club, Sunday, April 7, 2024, in Doral, Fla. (AP Photo/Rebecca Blackwell)
    Share
    NEW YORK CITY -

    For months, former U.S. president Donald Trump has been sitting on a social media fortune that he couldn鈥檛 touch. That will change very soon.

    The lock-up period prohibiting Trump from selling or even borrowing against his US$2.3 billion stake in Truth Social owner Trump Media & Technology Group (DJT) is scheduled to expire by September 25, according to filings.

    In theory, this will give Trump access to a pot of money that he could use to pay sky-high legal fees or even fund his presidential campaign. In reality, Trump faces huge obstacles that would make it very challenging to sell a large chunk of Trump Media 鈥 unless he doesn鈥檛 mind crashing the stock.

    鈥淚t would be all but impossible for Trump to liquidate his whole stake or even a third of it without completely tanking the stock price,鈥 Michael Ohlrogge, an associate professor of law at the New York University School of Law who has specialized in corporate governance and financial regulation, told CNN in a phone interview.

    And the share price is already tanking.

    Trump Media sinks to post-merger low

    Trump Media tumbled another four per cent on Wednesday, trading during the session below $20 for the first time since the merger that formed the company this spring.

    Trump Media has lost a staggering 70 per cent of its value since late March, a selloff that has accelerated as Vice President Kamala Harris, the Democratic nominee, has gained in the polls against Trump.

    That selloff has put a serious dent in Trump鈥檚 net worth.

    As recently as May 9, Trump鈥檚 dominant stake of 114.75 million shares of Trump Media was valued at US$6.2 billion.

    But Trump couldn鈥檛 touch that fortune because, as is typical in deals like this, certain shareholders are subject to a lock-up period that prevents insiders from immediately selling.

    According to filings, that lock-up period is scheduled to expire for Trump on September 25, but it could come even earlier.

    The lock-up would lift if Trump Media鈥檚 share price equals or exceeds US$12 for any 20 trading days within a 30-trading day period starting on August 22. As long as the stock doesn鈥檛 keep plunging, this would translate to the restrictions lifting as soon as September 20.

    'Rats jumping off a sinking ship'

    The central problem Trump would face in selling most of his stake in Trump Media is that he is the dominant figure for this company.

    Not only does Trump own a majority of the shares, he is the most popular user on the company鈥檚 central product, Truth Social. The company鈥檚 ticker symbol is even 鈥淒JT.鈥

    Racing for the exits could easily trigger a loss of confidence in Trump Media

    鈥淵ou don鈥檛 see sizable shareholders like President Trump selling a lot of stock because it drives the price down,鈥 said Charles Whitehead, a professor of business law at Cornell Law School. 鈥淔rom the market鈥檚 perspective, it may look like rats jumping off a sinking ship.鈥

    Investors would similarly be spooked if Elon Musk suddenly dumped most of his shares in Tesla or Mark Zuckerberg sold a massive amount of Facebook owner Meta.

    Trump Media insiders are selling

    Some Trump insiders are already selling, perhaps contributing to the recent selloff in the share price.

    For instance, Phillip Juhan, Trump Media鈥檚 chief financial officer and treasurer, recently disclosed selling US$1.9 million worth of stock. Trump Media鈥檚 general counsel Scott Glabe, chief operating officer Andrew Northwall and chief technology officer Vladimir Novachki made smaller sales last week too.

    Even Devin Nunes, the former Republican congressman who now serves as Trump Media鈥檚 CEO and president, dumped US$632,000 worth of stock last week.

    In Trump鈥檚 case, there could be political considerations, too.

    鈥淚f Trump were to sell a large number of shares and the stock price tanks, to some degree he would be burning his own supporters who bought the stock,鈥 said Jay Ritter, a finance professor at the University of Florida鈥檚 Warrington College of Business. 鈥淧olitically, that may not play out real well for him.鈥

    'Grossly overvalued'

    Another problem is that experts say Trump Media鈥檚 price tag defies logic.

    Despite the recent selloff, Trump Media is still valued at nearly US$4 billion. And that鈥檚 hard to square with the fact that the company made just US$837,000 in revenue last quarter.

    鈥淚t鈥檚 grossly overvalued,鈥 Ritter said. 鈥淚t鈥檚 hard to come up with a value of the company that is much more than the cash on the balance sheet.鈥

    Trump Media is sitting on US$344 million of cash and equivalents, funds the company has said it could use to build out its streaming business.

    Ohlrogge, the NYU professor, said the fundamentals 鈥渓ook even weaker鈥 than before Trump Media went public because supporters can鈥檛 argue the company is cash-constrained.

    鈥淭he current price is way higher than can possibly be justified based on fundamentals,鈥 Ohlrogge said.

    While Trump may be unable to sell many shares at this point, there is another way he could tap his Truth Social fortune. Once the lock-up period expires, Trump will no longer be prohibited from borrowing against his stake in Trump Media.

    That means Trump could pledge some or all of those shares as collateral in a loan.

    Of course, as Ohlrogge noted, 鈥渁 lot of banks are reluctant to do business with Trump due to their past interactions with him.鈥

    But even if banks won鈥檛 lend to Trump, rich supporters could.

    鈥淚t could be a wealthy individual who either thinks it鈥檚 good business or they see it as an opportunity to get on the good side of someone who might be the next president,鈥 Ohlrogge said.

    Experts say that if Trump does borrow against his Truth Social stake, he may not be required to disclose it.

    CTVNews.ca Top Stories

    Three men were injured after trying to subdue a man armed with a knife during afternoon prayers at a Montreal-area mosque Friday afternoon.

    Unusual flippered feet are making their way into the Saint Lawrence River this weekend. Led by underwater explorer and filmmaker Nathalie Lasselin, volunteer divers are combing the riverbed near Beauharnois in Mont茅r茅gie to remove hundreds of tires that have been polluting the aquatic environment for decades.

    Canada

    • A man is facing numerous drug trafficking charges after Dufferin OPP seized a large assortment of drugs and weapons in Orangeville earlier this week.

    • The London Police Service (LPS) is currently investigating a suspicious death in the east end.

    • Unusual flippered feet are making their way into the Saint Lawrence River this weekend. Led by underwater explorer and filmmaker Nathalie Lasselin, volunteer divers are combing the riverbed near Beauharnois in Mont茅r茅gie to remove hundreds of tires that have been polluting the aquatic environment for decades.

    • The 75-year-old building, formerly the Waskesiu Chamber of Commerce building, was relocated to the Parks Canada compound on the edge of the townsite.

    • Mattea Roach among the Maritimers honoured with the King Charles III Coronation Medal Friday.

    • Montrealers can get used to taking a stroll on several car-free streets during the summer in the years to come thanks to a new commitment from the city.

    World

    Politics

    Health

    Sci-Tech

    Entertainment

    Business

    Lifestyle

    • Tattoos are becoming more common in today's society and, as a result, appear to be more acceptable in the workplace than they used to be.

    • How to win the fight with kids over phone use

      The end of the day 鈥 when school, extracurricular activities and homework are (hopefully) finally done 鈥 is the window that many kids have for downtime. It can be a struggle to convince them not to go on their phones.

    • While slang may come and go, experts say the phenomenon behind them, which constantly churns out brand-new bon mots, is as old as language itself.

    Sports

    • Kiefer Sherwood spent several nights last spring chasing Quinn Hughes around the ice and generally pestering the Vancouver Canucks.

    • Cole Haas is more than just an avid fan of the F.W. Johnson Wildcats football team. He's a fixture on the sidelines, a source of encouragement, and a beloved member of the team.

    Autos

    Local Spotlight

    Cole Haas is more than just an avid fan of the F.W. Johnson Wildcats football team. He's a fixture on the sidelines, a source of encouragement, and a beloved member of the team.

    Getting a photograph of a rainbow? Common. Getting a photo of a lightning strike? Rare. Getting a photo of both at the same time? Extremely rare, but it happened to a Manitoba photographer this week.

    An anonymous business owner paid off the mortgage for a New Brunswick not-for-profit.

    They say a dog is a man鈥檚 best friend. In the case of Darren Cropper, from Bonfield, Ont., his three-year-old Siberian husky and golden retriever mix named Bear literally saved his life.

    A growing group of brides and wedding photographers from across the province say they have been taken for tens of thousands of dollars by a Barrie, Ont. wedding photographer.

    Paleontologists from the Royal B.C. Museum have uncovered "a trove of extraordinary fossils" high in the mountains of northern B.C., the museum announced Thursday.

    The search for a missing ancient 28-year-old chocolate donkey ended with a tragic discovery Wednesday.

    The Royal Canadian Mounted Police is celebrating an important milestone in the organization's history: 50 years since the first women joined the force.

    It's been a whirlwind of joyful events for a northern Ontario couple who just welcomed a baby into their family and won the $70 million Lotto Max jackpot last month.

    • A six-year-old girl who was reported missing in northern B.C. earlier this week remains unaccounted for, and "significant resources from across the province" have joined in the search, police said Saturday.

    • A man who was found dead behind a curling rink in Nanaimo, B.C., earlier this month was the victim of a homicide, police confirmed.

    • No one was injured when a large fire destroyed a home in a rural part of Surrey overnight.

    • A suspect wanted in a homicide in Richmond Hill has been arrested, York Regional Police say.

    • Toronto police say they have now identified a third person who they believe was involved in a shooting that left two men dead in North York earlier this week.

    • A man is fighting for his life in hospital a day after a vehicle smashed into several others in and around an intersection in Milton before flipping over.

    • The water coming from your taps might be a bit murky Saturday, but Calgary remains on schedule to end all water restrictions on Sunday.

    • An estimated 8,000 volunteers mobilized across the city Saturday as the Calgary Food Bank went door-to-door collecting food and funds.

    • The man charged with fatally stabbing lifelong Banff resident Ethan Enns-Goneau in 2022 has been convicted of second-degree murder.

    • A woman who went missing on the Ottawa River near Pembroke, Ont. while kayaking Tuesday night has been found dead, according to the Ontario Provincial Police (OPP).

    • A joint police operation to promote safe driving on Highway 417 in the Ottawa area has resulted in laying dozens of charges in three hours Friday, according to the Ontario Provincial Police (OPP).

    • Whether it was a big truck, or a small one, the construction trucks rolling past the Children鈥檚 Hospital of Eastern Ontario (CHEO) on Saturday had a very important job, and it's putting smiles on the faces of little ones.

    • Montrealers can get used to taking a stroll on several car-free streets during the summer in the years to come thanks to a new commitment from the city.

    • Three men were injured after trying to subdue a man armed with a knife during afternoon prayers at a Montreal-area mosque Friday afternoon.

    • Unusual flippered feet are making their way into the Saint Lawrence River this weekend. Led by underwater explorer and filmmaker Nathalie Lasselin, volunteer divers are combing the riverbed near Beauharnois in Mont茅r茅gie to remove hundreds of tires that have been polluting the aquatic environment for decades.

    • Tattoos are becoming more common in today's society and, as a result, appear to be more acceptable in the workplace than they used to be.

    • The Edmonton Police Service is looking for a person of interest in connection with a suspicious fire that destroyed a multi-unit building and damaged several townhomes earlier this week.

    • Former Edmonton Oiler Zack Kassian has rejoined the team as a pro scout, the Oilers announced on Saturday.

    • Halifax Regional Police warned the public of a series of high-value thefts targeting retail stores Friday.

    • Pictou County District RCMP is investigating a fatal crash that occurred in Thorburn, N.S., Saturday.

    • A proposal for additional parking to accommodate upgrades at the Irving Pulp & Paper Mill in Saint John, N.B., would add an estimated 500 parking spots at Wolastoq Park.

    • The search for a missing six-year-old boy in Shamattawa is continuing Friday as RCMP hope recent tips can help lead to a happy conclusion.

    • A herd of dogs paid visit to patients and residents at Riverview Health Centre during an annual event that lifts spirits and wags tails.

    • While slang may come and go, experts say the phenomenon behind them, which constantly churns out brand-new bon mots, is as old as language itself.

    • The last two months after losing her daughter Bella have been extremely difficult for Kyla Thomson.

    • Regina police arrested three youths in connection to a bear mace incident at a Regina high school on Friday.

    • Heading into Friday's game against the Calgary Stampeders, quarterback Trevor Harris said he and his Saskatchewan Roughriders were "ready to rock."

    • The Cambridge Professional Fire Fighters鈥 Association held their annual Muscular Dystrophy Boot Drive on Saturday.

    • Protests were held in front of Kitchener City Hall on Friday, both for and against LGBTQ2S+ inclusive education and queer rights in schools.

    • The provincial government is considering new rules to restrict a municipality鈥檚 ability to install new bike lanes if it means traffic lanes would be removed.

    • Heading into Friday's game against the Calgary Stampeders, quarterback Trevor Harris said he and his Saskatchewan Roughriders were "ready to rock."

    • The City of Saskatoon is proposing changes to the proposed downtown shelter site plan following feedback from nearby residents and businesses.

    • The 75-year-old building, formerly the Waskesiu Chamber of Commerce building, was relocated to the Parks Canada compound on the edge of the townsite.

    • A motorcyclist has died following a serious collision that took place in London鈥檚 south end on Friday afternoon.

    • The London Police Service (LPS) is currently investigating a suspicious death in the east end.

    • The St. Thomas police is asking the public for help locating a missing man.

    • A man is facing numerous drug trafficking charges after Dufferin OPP seized a large assortment of drugs and weapons in Orangeville earlier this week.

    • One person is in hospital after an e-bike crash in Orillia on Thursday.

    • On Saturday, OPP officers responded to a call after a car hit a tree in a parking lot at 8:00 a.m. on West St. S and King St in Orillia.

    • The Amherstburg Freedom Museum is celebrating a year of festivities in anticipation of its 50th anniversary in 2025.

    • The St. Clair College golf teams were successful at the Niagara Knights Invitational tournament on Friday.

    • A LaSalle high school is celebrating its emerald anniversary this weekend, with everyone who has ever walked its halls invited to return.

    • A man who was found dead behind a curling rink in Nanaimo, B.C., earlier this month was the victim of a homicide, police confirmed.

    • A six-year-old girl who was reported missing in northern B.C. earlier this week remains unaccounted for, and "significant resources from across the province" have joined in the search, police said Saturday.

    • The British Columbia election campaign is set to officially start today, with Lt.-Gov. Janet Austin issuing the writ for the Oct. 19 vote.

    • A pair of runaway pigs are in the custody of an animal sanctuary in the Okanagan after evading police and volunteers for hours earlier this week.

    • The Red Bridge, a historic landmark in Kamloops, B.C., was completely destroyed by fire early Thursday morning.

    • Animal protection officers in British Columbia have rescued three pit bulls 鈥 including one that gave birth to 10 puppies 鈥 from a rat-infested home in Kelowna.

    • Despite the heavy rain, plenty of muscle turned up for United Way鈥檚 annual Pull the Bus fundraiser in Lethbridge Friday.

    • Lethbridge County has rescinded its fire restriction as a result of the recent cool, wet weathr.

    • The Lethbridge Hurricanes kicked off the 2024-25 season on a winning note Friday night, defeating the Edmonton Oil Kings 3-1 in a game played at VisitLethbridge.com Arena.

    • Following an outbreak of COVID-19 on its continuing care floor and just ahead of the flu season, St. Joseph鈥檚 General Hospital in Elliot Lake has opted to re-introduce a universal masking policy until further notice.

    • A 26-year-old driver from Surrey, B.C., has been charged with three counts of criminal negligence causing death and bodily harm in a crash that killed two youths in northern Ontario last year.

    • Ontario Provincial Police say three suspects from southern Ontario have been charged and drugs worth $300,000 have been seized following a traffic stop Sept. 16.

    N.L.

    Shopping Trends

    The Shopping Trends team is independent of the journalists at 麻豆影视. We may earn a commission when you use our links to shop.聽Read about us.

    Stay Connected
    Follow 麻豆影视