Donald Trump to Receive $1.25 Billion Bonus in Trump Media Shares

Former President Donald Trump is set to receive an additional 36 million shares of Trump Media, valued at over $1.25 billion, as an 'earnout' bonus on Tuesday. This bonus is contingent on Trump Media's stock price hitting a minimum of $17.50 per share for 20 trading days within a 30-day period starting March 25.

Trump already owns 78.75 million shares as the company's majority shareholder, and the additional 36 million shares would bring his total stake to over $4 billion at the current share price of $35. The merged company, Trump Media & Technology Group Corp., began public trading under the ticker 'DJT' on March 26 at $70.90 per share, but the stock price has since plunged by nearly 68%.

Trump Media has the power to issue up to 40 million earnout shares, with some potentially going to the company's executive officers. The company reported a net loss of $58 million and $4.1 million in revenue for 2023. Any shares Trump owns are subject to a six-month lock-up provision, which the company's board has not yet amended.

Why this matters: The significant share bonus for Trump comes as he faces mounting legal fees and judgments. The additional shares would provide a major financial boost, but the true value of the earnout award is uncertain given questions about the company's market capitalization and Trump's ability to sell his shares due to regulations on majority shareholders.

Key Takeaways

• Trump set to receive 36M shares of Trump Media worth $1.25B as 'earnout' bonus.
• Trump's total stake in Trump Media to exceed $4B with additional shares.
• Trump Media reported $58M net loss and $4.1M revenue in 2023.
• Bonus comes as Trump faces mounting legal fees and judgments.
• Analysts skeptical of Trump Media's overvaluation and plunging stock price.