Trump could get big 'bonus' shares in new social media firm

NEW YORK (AP) — Donald Trump's social media company will get tens of millions in special bonus shares in a new publicly traded entity if it performs well, handing the former president possibly billions of dollars in paper wealth based on current stock prices, according to a prospectus filed with security regulators Tuesday.

The filing says Trump’s social media company that aims to challenge Twitter and Facebook will be able to exercise warrants convertible to as many as 40 million shares of the new publicly traded company over three years. The exact number will depend on how high the stock in the company trades during that time, with the maximum number granted only if it trades at least at $30 a share or higher for a sustained period.

The bonus shares for his company would come on top of nearly 90 million shares worth possibly billions more.

“Trump and his fellow shareholders could walk away with a really big payday,” said Jay Ritter, a professor at the University of Florida who specializes in initial public offerings, though he cautioned the stock could plunge. “At some point the company needs to produce profits and given the competitive nature of the media industry, that could be a stretch.”

Trump launched his new company, Trump Media & Technology Group, last week as he unveiled plans for a new messaging app called “Truth Social" to rival Twitter and other social media that banned him following the Jan. 6 insurrection at the U.S. Capitol.

TMTG’s plan is to become a publicly listed company through a merger with the publicly traded Digital World Acquisition Corp., a special purpose acquisition company, or SPAC, whose sole purpose is to acquire a private company and take it public.

Digital World's stock plunged 30% Tuesday to close at $59.07. It had traded above...