Trump Media Poised to Award Trump $1.25 Billion in Stock Earnout Bonus
Maxdailynews— 27 May
Donald Trump set to receive $1.25 billion worth of Trump Media stock in DJT earnout bonus
Trump set to receive additional 36 million shares
Former President Donald Trump is poised to receive an additional 36 million shares of Trump Media on Tuesday — an “earnout” bonus worth more than $1.25 billion, at Monday’s price.
The shares would be worth more than $1.25 billion at current prices.
Trump Media, which owns the Truth Social app, set aside these so-called earnout shares for him if the company’s stock met a minimum share price benchmark.
Trump, who is the presumptive Republican presidential nominee, was in New York for opening statements in his criminal hush money trial
That earnout is contingent on the benchmark being hit for 20 trading days within a 30-trading-day period, beginning March 25. Tuesday is the 20th day — and it is very unlikely that DJT will fall below the benchmark price by the close of trading then.
The 36 million additional shares Trump seems set to get would be added to the 78.75 million shares he already owns, as the company’s majority shareholder.
When the earnout shares are added to his existing stock, Trump’s total stake in Trump Media would be worth more than $4 billion on paper, at $35 a share.
Trump Media has the power to issue a total of 40 million earnout shares
Trump was in a New York City courtroom Monday, listening to opening statements in his criminal hush money trial. Court resumes Tuesday for the presumptive Republican presidential nominee.
The merged company, whose full name is Trump Media & Technology Group Corp., began public trading under the DJT ticker on March 26, at an opening price of $70.90 per share.
It remains to be seen if the issuance of the earnout shares to Trump will affect the share price of Trump Media.