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Turns out Donald Trump may not care too much about being banned from Twitter after all, as it has been announced his new media company is worth an eye-watering $10 billon! Yes, you read that right; and no, we couldn’t believe it either!
Trump Media and Technology Group (TMTG) was set up earlier this year by the 75-year-old former president following his ban from Twitter after the raid on the Capitol building. It has yet to actually produce anything; but with plans to launch its very own social media platform entitled ‘Truth Social,’ investors are flocking to support him!
For the eager traders out there, we must inform you that there isn’t actually any stock associated with the business yet, but investors can buy into a Special Purpose Acquisition Company (SPAC) which will at some point merge with TMTG. When the news was first revealed, shares of the SPAC rocketed from $10 to $60 each over the last month! That’s business that even Trump himself would be proud of!
Be warned though that SPACs are often overvalued, and research shows that 16 SPACs that merged in the last two years (and continued trading for at least a year) lost an average of 35% of their values. Not so good after all; Trump would not approve!
Having said that, these things are usually built on hype and speculation (which we know Trump is very good at!) and it’s been calculated that if even a third of his VERY loyal following sign up to his new platform, the company will be worth up to $5.6 billion. Let's take a moment to process that figure! Alternatives to Facebook and Twitter have so far underperformed, but we wouldn’t be surprised if Trump manages to make his version a success considering how popular he was on social media before.
Let's not forget that his @realdonaldtrump Twitter account had amassed 88.7 million followers just before it was suspended in January earlier this year. That's a LOT of followers! The only question that remains is: how is he going to get himself banned from this one?! Stranger things have happened so we wouldn’t be surprised to find him kicked off of his very own social media platform. Watch this space!
