(JustPatriots.com)- Former President Donald Trump is branching out from real estate and starting a new social media company, known as TRUTH Social. Reports suggest that the company is expected to get tens of millions in special bonus shares as a new public traded entity if it continues to perform well.
It means that Trump could be in for a boost of several billion dollars in terms of his paper wealth, based on stock prices right now.
According to a filing with security regulators on Tuesday, the new social media company will aim to take on big social media giants and will have the opportunity to exercise warrants that are convertible to as much as 40 million shares of the new company over the next three years. The precise number of shares will depend on how well the stock trades during this period. The maximum number of shares granted will depend on whether the company sees prices reach $30 per share for a prolonged period.
Jay Ritter, a professor from the University of Florida who specializes in public offerings, said that Trump and his shareholders “could walk away with a really big payday.”
He did warn, however, that the stock could plunge depending on how well the new business does, adding that at some point it will need to produce profits – something that’s particularly difficult in the social media world.
If TRUTH Social, along with the media side of the new Trump venture that is expected to include TV and radio shows, is to be successful then it will need to generate a significant number of users that generates interest from advertisers.
The new Trump Media & Technology Group was unveiled last week and is expected to be the most successful and wide-ranging conservative-leaning media platform in the country. If it does well, Trump could soon rival Fox News and even social media giants like Twitter.
Will you be buying shares in this new venture?