3.5 C
Washington

Judge clears way for Trump Media merger vote that could spell $4 billion windfall for ex-president

Date:

Share:



A Delaware judge won’t stand in the way of a March 22 shareholder vote on a merger involving Trump Media & Technology Group that may provide a $4 billion windfall for former President Donald Trump.

Delaware Chancery Court Judge Sam Glasscock III said Saturday he wouldn’t hold up the vote because of complaints by Trump Media co-founders Andy Litinsky and Wes Moss that the former president seeks to dilute their 8.6% stake in the business as part of the merger.

Litinsky and Moss — ex-contestants on Trump’s TV show The Apprentice who joined forces with him to form Trump Media — allege the former president wants to increase the amount of shares in Trump Media to water down their stake and potentially generate billions to pay off legal judgments.

Glasscock declined to hold a hearing on the challenged merger before the March 22 vote because if Trump agrees to put the extra shares in an escrow account during the dispute, then “maybe the whole thing will go away,” he noted in a Zoom call.

Officials at Digital World Acquisition Corp. – the blank-check company slated to host the vote — have already agreed to escrow the disputed stock in a separate suit filed by Patrick Orlando’s ARC Global Investments II. In its suit, ARC challenged the conversion rate proposed for its founder’s stake, with the firm arguing it should get more shares in the merged company. Orlando is Digital World’s ex-chief executive officer.

Lori Will, the Chancery judge in that case, earlier this week turned down a request to expedite the suit, citing the escrow.

Digital World’s stock has soared this year, valuing Trump’s stake at billions of dollars, at least on paper. It’s a possible financial lifeboat for the ex-president, who faces hundreds of millions in legal judgments from the state of New York’s suit targeting fraudulent valuations of his assets and advice columnist E. Jean Carroll’s suit over statements Trump made about her allegations he sexually assaulted her. Trump posted a nearly $92 million bond in that case Friday.

The case by Litinsky and Moss is United Atlantic Ventures v Trump Media, 2024-0184, Delaware Chancery Court (Georgetown).

Subscribe to the CFO Daily newsletter to keep up with the trends, issues, and executives shaping corporate finance. Sign up for free.



Source link

Subscribe to our magazine

━ more like this

Sony wants 60fps PS5 Pro “Enhanced” games, but it’s happy to settle for less

Sony is working on a new “high-end version” of the PS5, codenamed Trinity and likely to debut as the PS5 Pro later this...

The beginner’s guide to frequent flyer programs: How to earn, redeem and maximize airline miles

Fortune Recommends™ has partnered with CardRatings for our coverage of credit card products. Fortune Recommends™ and CardRatings may receive a commission from card...

7 people with power at Coinbase

Coinbase launched in 2012 as a one-man startup with the goal of bringing crypto into the mainstream. It has since grown into a...

AI hallucinations will be solvable within a year, ex-Google AI researcher says—but that may not be a good thing

If you’ve ever asked ChatGPT, Gemini and other generative AI chatbots a question, you’ll have found that the answers they throw out can...

Anker’s latest Soundcore Sleep earbuds actually improve slumber for less than $90

“Sleep when you’re dead” was the rallying cry of my youth. But now, in the soft haze of dull middle age, I feel...