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Trump’s Social Media Company Approved To Go Public, Potentially Netting Former President Billions

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NEW YORK — Donald Trump is returning to the stock market, and the former president will profit handsomely.

In a vote on Friday, shareholders of Digital World Acquisition Corp., a publicly traded shell company, approved a merger with Donald Trump’s media business. That means Trump Media & Technology Group, whose flagship product is social networking site Truth Social, will soon be listed on the Nasdaq stock exchange.

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Trump’s Social Media Company Approved To Go Public, Potentially Netting Former President Billions

Trump is slated to possess most of the combined business, or approximately 79 million shares. Multiply it by Digital World’s Thursday closing stock price of $42.81; his investment may be worth more than $3 billion.

The approval comes when the likely Republican presidential nominee faces his most expensive legal battle: a $454 million judgment in a fraud case.

However, Trump will not be able to cash out the deal’s windfall until the company’s board alters a “lock-up” provision prohibiting insiders from selling freshly issued shares for six months.

Trump’s presidential campaign has yet to immediately reply to a request for comment.

When a publicly traded shell company agrees to buy a private company, the target company joins a stock exchange once shareholders approve the merger. If recent movement in Digital World’s stock is any indicator, Trump Media stockholders may be in for a wild ride.

Instead of large institutional and experienced investors, many of Digital World’s investors are small-time investors who are either Trump supporters or looking to cash in on the craze. Those stockholders helped the stock more than quadruple this year in anticipation of the merger’s completion. After the deal was completed on Friday, shares plunged as much as 12% before recovering to roughly 2.5% by lunchtime.

Trump’s previous venture into the stock market could have gone better. Trump Hotels and Casino Resorts went public in 1995 with the DJT ticker, which Trump Media will trade under. In 2004, Trump’s casino company filed for bankruptcy and was delisted from the New York Stock Exchange.

Before Friday’s approval, Digital World’s regulatory filings detailed several of the dangers that its investors and the Truth Social owner will face once Trump Media becomes public.

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Trump’s Social Media Company Approved To Go Public, Potentially Netting Former President Billions

According to the business, one concern is that Trump, as a dominant stakeholder, would be entitled to vote in his interests, which may only sometimes be in the best interests of all shareholders. Digital World also mentioned the high incidence of failure for new social media platforms, as well as Trump Media’s prediction that it will lose money on its operations “for the foreseeable future.”

Trump Media lost $49 million in the first nine months of last year, bringing in only $3.4 million in income and incurring $37.7 million in interest expenses.

Trump Media and Digital World first announced their merger ambitions in October 2021. Prior to Friday’s decision, the merger faced a number of lawsuits in addition to a federal investigation.

Truth Social debuted in February 2022, one year after Trump was barred from major social media platforms such as Facebook and Twitter, the platform now known as X, following the Jan. 6 revolt at the US Capitol. He has now been restored in both, but Truth Social remains his primary platform for spreading his ideas.

Thursday evening, Trump praised Truth Social on social media: “TRUTH SOCIAL IS MY VOICE, AND THE REAL VOICE OF AMERICA!!! MAGA2024!!!”

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Trump’s Social Media Company Approved To Go Public, Potentially Netting Former President Billions

So far, Trump Media has not published the number of Truth Social users. However, research firm Similarweb says there were approximately 5 million active mobile and web users in February. That’s significantly less than TikTok’s more than 2 billion and Facebook’s 3 billion, but it’s still more than other “alt-tech” rivals like Parler, which has been down for nearly a year but plans to relaunch, and Gettr, which had less than 2 million visitors in February.

With a public offering, Trump’s social media company will soon be required to reveal more information.

Private corporations are responsible to their owners, whereas public companies are liable to the shareholders who own the company’s stock. Once public, Trump Media will be compelled to report quarterly financial results and relevant news to federal regulators.

In this regard, Truth Social confronts some of the same issues that X has been dealing with: mainstream sponsors who do not want to be connected with hate speech and other problematic content.

SOURCE – (AP)

Kiara Grace is a staff writer at VORNews, a reputable online publication. Her writing focuses on technology trends, particularly in the realm of consumer electronics and software. With a keen eye for detail and a knack for breaking down complex topics, Kiara delivers insightful analyses that resonate with tech enthusiasts and casual readers alike. Her articles strike a balance between in-depth coverage and accessibility, making them a go-to resource for anyone seeking to stay informed about the latest innovations shaping our digital world.

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Britain Must Be Ready for War in 3 Years, Warns New Army Chief

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Britain Must Be Ready for War in 3 Years, Warns New Army Chief

The new head of the Army has stated that Britain must be prepared to fight a war within three years.

Gen Sir Roland Walker has issued a warning about a variety of risks in what he calls a “increasingly volatile” environment.

However, he stated that war was not inevitable and that the Army had “just enough time” to prepare to prevent conflict.

He stated that the Army’s fighting capacity would be doubled by 2027 and tripled by the end of the decade.

Gen Walker warned that the Britain was under threat from a “axis of upheaval” in his first speech as Prime Minister on Tuesday.

Among the primary concerns confronting the Britain in the next years, as noted by the general in a briefing, is an enraged Russia, which may seek vengeance on the West for helping Ukraine, regardless of who wins the war.

He stated: “It doesn’t matter how it finishes. I believe Russia will emerge from it weaker objectively – or completely – but still very, very dangerous and seeking some form of retaliation for what we have done to assist Ukraine.”

Britain’s Government Defence Review and Military Challenges

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He also warned that China was determined to retake Taiwan, and Iran was likely to seek nuclear weapons.

He stated that the threats they posed may become particularly acute in the next three years, and that these countries had formed a “mutual transactional relationship” since the war in Ukraine, sharing weaponry and technology.

However, he stated that the path to conflict was not “inexorable” if the UK re-established credible land troops to assist its deterrent strategy for avoiding war.

In his speech, he described his force of slightly over 70,000 regular troops as a “medium-sized army” and made no direct call for additional resources or men.

However, he pushed the British Army to adapt swiftly, focussing on technology such as artificial intelligence and weaponry rather than numbers.

His ultimate goal is for the Army to be capable of destroying an opponent three times its size.

This would entail firing quicker and farther, he said, aided by lessons learnt from the Ukraine war.

The general’s speech at the Royal United Services Institute land warfare conference comes only one week after the government began a “root and branch” defence review to “take a fresh look” at the challenges facing the armed services.

Defence Secretary John Healey launched the assessment, describing the existing status of the armed forces as “hollowed-out” and stating that “procurement waste and neglected morale cannot continue”.

According to the most recent Ministry of Defence (MoD) numbers from April 2024, the Britain’s regular Army forces total 75,325 troops (excluding Gurkhas and volunteers).

That figure has been declining in recent years, as recruiting has failed to match retention. The previous Conservative administration lowered the planned headcount from 82,000 to 72,500 by 2025.

Members of the NATO military alliance have agreed to spend at least 2% of GDP on defence by 2024, but several countries are unlikely to fulfil this goal.

The Britain presently spends 2.3% of its GDP on defence. Prime Minister Sir Keir Starmer has previously stated that the defence review will include a “roadmap” for increasing this to 2.5%, however he has yet to provide a date for this promise.

Source: BBC

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Katie Ledecky Hopes For Clean Races At Paris Olympics In The Aftermath Of The Chinese Doping Scandal

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PARIS — Katie Ledecky is looking for clean Olympic races. On Wednesday, Hope had pretty much reached her limit.

The American swimmer hopes to add to her six gold medals as she competes in the 400, 800, and 1,500 meters at the Paris Games. Her program starts with the heavy 400 on Saturday, featuring Ariarne Titmus and Summer McIntosh.

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Katie Ledecky | ESPN Image

Katie Ledecky Hopes For Clean Races At Paris Olympics In The Aftermath Of The Chinese Doping Scandal

The 27-year-old Katie is competing in her fourth Summer Olympics, but the first since a doping scandal involving almost two dozen Chinese swimmers who tested positive for a banned chemical before the Tokyo Games — yet were permitted to compete with no consequences. The controversy has raised serious worries regarding the effectiveness of anti-doping initiatives.

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Katie Ledecky | Vogue Image

“I hope everyone here is going to be competing clean this week,” Ledecky claimed. “But what truly counts is, were they training cleanly? Hopefully this has been the case. Hopefully, there has been worldwide testing.”

The International Olympic Committee has expressed concern over the ongoing US investigation into possible doping by Chinese swimmers. While awarding the 2034 Winter Olympics to Salt Lake City on Wednesday, the IOC urged Utah officials to do whatever they could to stop the FBI investigation.

“I think everyone’s heard what the athletes think,” Katie added. “They seek transparency. They want more answers to the remaining questions. At this point, we are here to race. We are going to race whoever is in the lane next to us.

“We are not paid to conduct the tests, so we trust those who follow their regulations. That applies both today and in the future.

 

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Katie Ledecky | ESPN Image

Katie Ledecky Hopes For Clean Races At Paris Olympics In The Aftermath Of The Chinese Doping Scandal

SOURCE | AP

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London Heatwave Alert: High Temperatures Set to Soar to 29C Next Week

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London Heatwave Alert High Temperatures Set to Soar to 29C Next Week

As the summer holidays begin, London may experience an official heatwave with temperatures reaching up to 29 degrees Celsius.

The Met Office predicts a long period of sunny and dry weather for London after a soggy spring and summer.

After a cloudy day on Saturday, temperatures are expected to reach 27C on Sunday, with lots of sunlight.

On Monday and Tuesday, temperatures are forecast to peak at 29 degrees Celsius. Monday is forecast to offer more sunlight, while Tuesday may see some gloomy weather.

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Temperatures are expected to remain in the high 20s next week, with lows of approximately 18C.

According to the Met Office, a heatwave is “an extended period of hot weather relative to the expected conditions of the area at that time of year, which may be accompanied by high humidity.”

In the United Kingdom, a heatwave is proclaimed when daily temperatures meet or surpass a certain level for at least three consecutive days.

In London, the heatwave threshold is 28 degrees Celsius.

The Met Office reported that the UK is experiencing hotter and wetter weather on average due to climate change.

The UK experienced its warmest May and April on record this year, despite damp and dismal conditions in many areas.

According to the Met Office’s State Of The UK Climate 2023 report published on Thursday, the UK experienced historic levels of extreme weather last year.

In the United Kingdom, 2023 was the second warmest year on record, bringing storms, flooding, strong heatwaves, and rising sea levels; only 2022 was warmer.

It was 0.8°C higher than the average from 1991 to 2020, and 1.66°C higher than the 1961 to 1990 average.

However, 2023 will be a “cool year” in comparison to 2100, based on the planet’s warming trajectory.

The government’s plan to adapt to the hazards presented by climate change is currently being challenged in the High Court by campaigners who allege the Tory administration’s July 2023 National Adaptation Programme (NAP) fails to adequately address 61 concerns.

Source: The Standard

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