New York City, New York – Former President Donald Trump is poised to make a significant return to the stock market as shareholders of Digital World Acquisition Corp., a publicly traded shell company, voted to approve a deal merging with Trump’s media business. The deal will see Trump Media & Technology Group, the company behind the social networking site Truth Social, begin trading on the Nasdaq stock market. Trump is set to own a majority stake in the combined company, with nearly 79 million shares valued at approximately $3 billion based on Digital World’s closing stock price.

The approval comes at a crucial time for Trump, who is currently facing a $454 million judgment in a fraud lawsuit. Despite the potential windfall from the deal, Trump may not be able to cash out immediately due to a “lock-up” provision that restricts company insiders from selling newly issued shares for six months. Trump’s presidential campaign did not respond to requests for comment on the development.

Digital World’s stock saw significant volatility leading up to the merger approval, with small-time investors driving the stock price up more than double this year in anticipation of the deal. However, on the day of the approval, shares saw a nearly 14% drop. Previous ventures by Trump into the stock market, such as Trump Hotels and Casino Resorts, led to bankruptcy protection and delisting from the NYSE in 2004.

The regulatory filings for Digital World highlighted several risks for investors, including concerns about Trump’s control as a majority shareholder and the high failure rate of new social media platforms. Trump Media reported a loss of $49 million in the first nine months of the previous year, raising questions about the company’s financial health. Shareholders also voted to approve a board of directors for Trump Media, including Donald Trump Jr. and former Republican Rep. Devin Nunes.

The merger between Trump Media and Digital World was announced in October 2021 and faced legal challenges leading up to the shareholder vote. Truth Social, launched in February 2022 as an alternative to mainstream social media platforms, has attracted an estimated 5 million users. As Trump’s social media business prepares to go public, it will be required to disclose more details about its finances and operations to federal regulators, potentially facing similar challenges as other platforms in the industry.

The move into the public market marks a significant milestone for Trump’s media business, which will now be accountable to shareholders and required to report quarterly finances and material news to regulators. With mainstream advertisers wary of associating with controversial content, Truth Social may face challenges similar to those experienced by other social media platforms. The merger approval paves the way for Trump’s media empire to enter a new phase of transparency and scrutiny in the public market.