Former President Donald Trump’s foray into the media world is making headlines once again, but this time for all the wrong reasons. Since its much-hyped debut in late March, Trump’s media venture – TMTG — has been on a rollercoaster ride that’s leaving investors dizzy and the former president counting losses.
The stock, trading under the ticker $DJT on Nasdaq Composite, soared to a promising high of around $80 per share initially, but the optimism has since fizzled out. The stock closed at a dismal $40.42 per share on Friday, marking a new record low and spelling trouble for Trump’s Truth Social microblogging app and its parent company.
Trouble for Trump’s media venture
For Trump, who holds a majority stake of approximately 78 million shares in $DJT, the plummeting stock value has dealt a staggering blow to his finances. Initially seeing his shares valued at a hefty $4.9 billion during the IPO frenzy, Trump’s wealth has taken a hit, with his shares now worth a comparatively meager $3.2 billion.
The downward spiral hit a new low following a scathing remark from business titan Barry Diller, chairman of Expedia Group. Diller labeled Trump’s stock a “scam” and dismissed investors in it as “dopes.” Diller highlighted the absence of revenue in TMTG, branding it another of Trump’s dubious ventures.
Adding fuel to the fire, ongoing legal battles between Trump and the architects of TMTG’s IPO, Andy Litinsky and Wes Moss, have injected further uncertainty into the company’s future.
Litinsky and Moss launched a legal offensive against Trump in Delaware Chancery Court. Accusing him of manipulating corporate maneuvers to dilute their shares, they allege Trump sought to boost his family’s ownership at their expense.
As $DJT braces for another tumultuous week of trading, the saga surrounding Trump’s media venture serves as a cautionary tale of hype, hubris, and the high stakes of the stock market.
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