Trump Media sued by co-founders ahead of DWAC merger, potential setback for lucrative deal
The planned merger of TMTG with a shell company called Digital World Acquisition Corp., would result in the shares of the combined entity being publicly traded.
Former President Donald Trump was accused in a lawsuit Wednesday of trying to “drastically dilute” the value of stock shares in his social media company held by the firm’s co-founders, potentially depriving themof hundreds of millions of dollars in profits.
The partnership, United Atlantic Ventures alleges that Trump Media & Technology Group engaged in “wrongful 11th hour … maneuvering” to dilute UAV″s minority stake in the media company, a court filing says.
The Delaware Chancery Court lawsuit comes in advance of the planned merger of TMTG with a shell company called Digital World Acquisition Corp., which would result in the shares of the combined entity being publicly traded.
If DWAC shareholder approve the merger next month, Trump’s 90% stake in TMTG could be valued at more than $3 billion, given DWAC’s current share price.
UAV is a partnership of Andy Litinsky and Wes Moss, who initially pitched Trump the idea of creating Trump Media in February 2021, after the former president was banned from Twitter and Facebook following the deadly Jan. 6 Capitol riot.
Both Litinsky and Moss were contestants on Trump’s television show, “The Apprentice.”
TMTG later built and launched Truth Social, the social media platform that Trump uses almost exclusively to communicate with the public.
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Former President Trump was accused in a lawsuit of trying to “drastically dilute” the value of stock shares in his social media company held by the firm’s co-founders, potentially depriving them of hundreds of millions of dollars in profits. https://t.co/NbZ6171Lwh
— NBC News (@NBCNews) March 1, 2024
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