Trump Media stock jumps after former president says he won't sell shares when lockup expires
Business
Trump created Truth Social after he was banned from Twitter and Facebook following the Jan. 6, 2021
NEW YORK (AP) — Shares of Trump Media & Technology Group Corp. jumped Friday after former President Donald Trump said he won’t sell shares of the social media company.
“I don’t wanna sell my shares. I don’t need money,” Trump said while speaking to reporters at his golf club in Los Angeles.
Trump owns nearly 115 million shares of the company, according to a recent filing with the Securities and Exchange Commission. Based on Thursday’s closing price of $16.08, Trump’s shares are worth approximately $1.85 billion.
The former president can start selling shares of Trump Media, the parent company of Truth Social, starting on Sept. 19 when a lockup provision ends, if he chooses to do so. The lockup provision prevented company insiders from selling newly issued shares for six months after the company began trading publicly in March.
Even though Trump would receive a sizeable payout if he did sell, the stock of Trump Media is now worth considerably less than it was valued at several months ago. When the company made its debut on the Nasdaq in March, it hit a high of $79.38.
Trump created Truth Social after he was banned from Twitter and Facebook following the Jan. 6, 2021, Capitol riot. Based in Sarasota, Florida, Trump Media has been losing money and struggling to raise revenue. It lost nearly $58.2 million last year while generating only $4.1 million in revenue, according to regulatory filings.
“I use it as a method of getting out my word,” Trump said Friday of Truth Social. “For me, it is a great voice.”
The stock dipped more than 10% Wednesday following the debate between Trump and Vice President Kamala Harris. On Friday, shares rallied as much as 29% and ended the day up 11.8%.
