Donald Trump’s real social fusion has a ‘curious moment’: a legal analyst
Donald Trump’s real social fusion has a ‘curious moment’: a legal analyst

Former President Donald Trump’s Truth Social merger has a “curious moment,” former federal prosecutor and legal analyst Glenn Kirchner said Friday.

The shareholders of Digital World Acquisition Corp. (DWAC), an existing shell company, agreed to merge with Trump Media and Technology Group (TMTG), which owns Truth Social, on Friday, clearing the way for the former president’s company to go public without all the hoops of a traditional initial public offering ( IPO).

With 79 million shares, Trump now owns more than 50 percent of the company after the merger. Shares opened at $44.49 a share at the market open on Friday. At that price, Trump’s majority stake is worth more than $3.5 billion.

As Trump becomes a richer man, he faces a looming deadline to pay $454 million in bonds by Monday to stop the seizure of his assets to pay Judge Arthur Engoron’s judgment in the civil fraud case in New York against him.

Trump, the presumptive Republican presidential nominee in 2024, has pleaded not guilty to any wrongdoing and says the case against him is politically motivated. The former president is appealing Engoron’s decision.

Kirchner, a former assistant US attorney and frequent Trump critic, appeared on political commentator Brian Tyler Cohen’s YouTube show The legal breakdown to discuss Trump’s lawsuit and his recent merger.

In a video posted on Cohen’s YouTube channel Friday night, Kirchner said of the merger: “It’s curious to say the least, all of a sudden, literally 48 hours before Donald Trump’s half-billion bill is due, his company is merging, a company that includes Truth Social, and it could reportedly earn as much as $2 or $3 billion. What curious moment is this?’

The legal analyst made it clear that the merger does not mean Trump will have access to $2 or $3 billion in liquid assets right away. Most mergers prohibit major shareholders from selling shares for the first six months after the deal.

Donald Trump
Former President Donald Trump speaks to supporters during a rally on March 16 in Vandalia, Ohio. Trump’s Truth Social merger has a “curious moment,” former federal prosecutor and legal analyst Glenn Kirchner said Friday.

Scott Olson/Getty Images

Kirchner continued, “But that doesn’t mean that if this merger is a real thing and Donald Trump is now at least theoretically worth another $2 or $3 billion as a result of this merger … it seems to me that maybe he could use that As collateral.

“If someone wanted to say… ‘Now you’re worth another 2 or 3 billion. I’d be willing to lend you, on really favorable terms for me, the lender, the half million you need to fend off Tish [Letitia] James starts confiscating your properties.

However, he clarified that he is not an expert on corporate acquisitions and mergers.

Kirchner said Newsweek by phone on Saturday that this merger is primarily a public relations move.

“My overwhelming feeling is that this is more public relations in terms of this merger and the value that Donald Trump can get out of this merger,” he said. “This is more public relations than legal ramifications in terms of his ability to post liquid assets or post bonds to advance his right to appeal without Tish James seizing his assets.”

The legal analyst added that his “uninformed impression is that no one in their right mind” would be willing to loan Trump the nearly half a billion dollars he needs, “but then again, maybe there are lenders somewhere.”

Newsweek reached out to Trump’s campaign and attorney by email for comment.

Engoron last month ordered Trump to pay $355 million plus interest and banned him from doing business in New York for three years after finding him liable for financial fraud in September 2023 in a lawsuit filed by the New York attorney general Letitia James.

Trump’s two grown sons, Donald Jr. and Eric, and two Trump Organization company executives, Alan Weiselberg and Jeff McConney, were also named in the lawsuit and face their own penalties.