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lite.cnn.com - on gopher - inofficial | |
ARTICLE VIEW: | |
Donald Trump just got another $1.8 billion worth of Trump Media stock | |
By Matt Egan, CNN | |
Updated: | |
10:30 PM EDT, Tue April 30, 2024 | |
Source: CNN | |
Former President Donald Trump just landed another $1.8 billion worth | |
of stock in the corporate owner of Truth Social. | |
disclosed the windfall for Trump in a Tuesday, saying the former | |
president has received another 36 million shares in the company. | |
That bonus, known as “earnout” shares, was triggered by the | |
company’s share price staying above certain levels. | |
Trump Media said in the filing that on April 26 it officially | |
determined the performance criteria “had been satisfied” and Trump | |
was “subsequently issued the Earnout Shares.” | |
At current prices, those new shares are valued at approximately $1.8 | |
billion on paper – though the share price has been extremely | |
volatile. | |
Trump now holds an even more dominant stake in Trump Media, amounting | |
to 114.75 million shares, or 64.9% of the total outstanding. | |
According to SEC filings, the full earnout of 40 million shares to | |
pre-merger shareholders would be paid if the company’s dollar | |
volume-weighted average price equaled or exceeded $17.50 for any 20 | |
trading days within any 30-day trading period beginning on March 25. | |
Tuesday, April 23 marked the 20th trading day for Trump Media, and the | |
stock has not traded below that $17.50 level at any point during that | |
timeframe. | |
The value of Trump’s stake in the company – and his net worth | |
overall – has swung wildly in recent weeks in tandem with the | |
volatile share price. | |
The earnout shares Trump just received are subject to lock-up | |
restrictions that prevent insiders from selling or even borrowing | |
against their stock for months, according to . | |
Even if Trump is able to get around the lock-up agreement, experts say | |
it would be challenging for him to quickly sell his stake without | |
crashing the stock price. Trump is not just the chairman and most | |
popular user on Truth Social, he is by far the largest shareholder. | |
Trump Media’s share price has been subject to extreme turbulence. | |
It peaked at $66 on March 27, its second day as a public company. The | |
stock crashed to a post-merger low of $22.84 on April 16 and has since | |
more than doubled to nearly $50. | |
Even though Trump Media plunged since late March, it never came close | |
to breaching levels that would have threatened this bonus. | |
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