c/news · by Oofnik@kbin.social · 2y

Trump is about to get $3 billion richer after deal is approved to take his company public. But it won’t solve his cash crunch | CNN Business

https://edition.cnn.com/2024/03/22/business/trump-truth-social-dwac-shares/index.html?iid=cnn_buildContentRecirc_end_recirc

Investors have approved a deal on Friday to make Truth Social owner Trump Media a publicly traded company. The green light from shareholders clears the final major hurdle for a long-delayed transaction that will generate a multi-billion dollar windfall for former President Donald Trump at a time when he’s facing immense financial and legal pressure.

8 points · 4 comments · view on lemmy.world

4 Comments

style99@kbin.social · 4 pts · 2y

The number of Truth Social’s US monthly active users on iOS and Android is down 39% year-over-year, according to Similarweb data shared with CNN earlier this month. Truth Social remains much smaller than X (formerly Twitter), which is also shrinking but at a slower pace.

And yet Trump Media is being valued north of $6 billion on a fully diluted basis, which includes all stocks and options that could be converted to common stock, according to Jay Ritter, a finance professor at the University of Florida.

Ritter said the current market price is hard, if not impossible, to justify.

“It is grossly overvalued,” said Ritter. “It qualifies as a meme stock for which the price is divorced from fundamental value…Meme stock investors are usually buying on the basis of the greater fool theory of investing: It is overvalued today, but I hope to make money selling it to an even greater fool tomorrow at an even higher price.”

This is the story of Trump's entire life.

swope@kbin.social · 2 pts · 2y

grossly overvalued

Just grossly? lol

ThePantser@lemmy.world · 1 pts · 2y (1 reply)

Then Muskrat is gonna swoop in buy it and name it X2.

DoomBot5@lemmy.world · 1 pts · 2y

He'll probably name it Y