cross-posted from: https://lemmy.ml/post/13470219
Trump Is in Line for a $3.5 Billion Windfall From Stake in Truth Social
If the SPAC is approved this week, he could potentially use the stock as collateral to get a bond and avoid having properties seized or declaring bankruptcy by next week’s deadline.
There’s no possible way Truth Social is worth that much. DWAC is a scheme to launder retail investor’s money directly into Donald Trump’s pocket.
That’s not how valuation works.
If it goes public with a large share price he would STILL need to sell shares to someone willing to spend enough to bail him out.
And they are already saying no.
But they’d say yes if they owned a piece of his social media outlet? No, they could ask that of him now.
He’s not really taking Truth Social public, though. He is letting it be acquired by DWAC, whose sole purpose for existing is to acquire Truth Social. DWAC is public, and has been pumped hard by Trump supporters thinking it will make them rich.
As far as I can tell, his plan is to have DWAC acquired it at an insanely high valuation, cashing himself out at their expense. his fans who invested heavily will be left holding the bag… And will likely still vote for him!
This is also, at soonest, weeks away. When New York State will likely be selling off his assets to pay his debt to the state, this may be on the chopping block, lol.
Letitia James isn’t just looking at his properties, she’s also looking at his investments.
That values Truth Social at $6 billion. Reddit’s IPO valued it at $6.4 billion.
Even if $6B is what is implied by whatever is happening, you need a buyer who is willing to pay Trump that valuation 6 months after the acquisition. Just no way it can stand up to that valuation, it does not have the users for it. 2 million active users to Reddits 500 million.
This truly is the dumbest timeline.
