A Rocky Start for Trump Media & Technology Group Corp.
In a matter of weeks, Trump Media & Technology Group Corp. underwent a turbulent beginning, resulting in a staggering $4.5 billion decline in market value. Nonetheless, this setback alone will not endanger the considerable special bonus allocated for the former president, Donald Trump, and other corporate insiders.
Massive Dividend Hangs in the Balance
The startup, as part of its blank-check deal, will distribute 40 million fresh shares among Trump Media insiders, based on regulatory filings. Donald Trump himself, the preeminent stakeholder, occupies the lion’s share. Nonetheless, this allocation of shares, referred to as earnouts, carries potential risks for stakeholders. While earnouts typically celebrate and reward original investors in special purpose acquisition companies (SPACs), they concurrently dilute the stakes of ordinary shareholders with the issuance of millions of additional shares.
