Donald Trump secretly transfers $4 billion in shares to trust

In the United States, on December 17, 2024, President-elect Donald Trump made a significant transfer of his shares in Trump Media & Technology Group to a revocable trust. This transfer amounted to approximately 114.75 million shares, valued at over $4 billion, making it one of the largest portions of his net worth. The regulatory filing with the Securities and Exchange Commission (SEC) stated that Trump did not receive any financial compensation for this transfer, which was classified as a gift to the Donald J. Trump Revocable Trust. With this move, Trump indirectly retained ownership of these shares while his eldest son, Donald Trump Jr., became the sole trustee of the trust, possessing full voting and investment power over the company's securities. Trump's stake represented nearly 53 percent of Trump Media's outstanding shares, solidifying his position as the largest individual shareholder of the company. However, the company's financial performance has raised concerns, as it has reportedly been losing money and has generated only a few million dollars in revenue despite its market valuation. The motivations behind Trump's decision to transfer his shares may be linked to potential conflicts of interest related to his upcoming presidency. Trump's ownership of Trump Media, which operates the Truth Social app, could create issues during his administration, especially as he has utilized the platform to announce cabinet nominations and other significant appointments. By transferring his shares to a trust, Trump takes a proactive step in managing these conflicts. It also reflects a pattern of similar transfers he has made in the past, particularly before his first presidential inauguration in 2017, whereby he moved various assets to the same revocable trust. Despite these moves, Trump remains disconnected from the day-to-day operations of Trump Media, having not held any executive position since the company went public. His focus has shifted towards appointments for key roles within his administration, selecting prominent figures from Trump Media, such as CEO Devin Nunes, for high-level positions. The ongoing narrative surrounding Trump Media and its relations to Trump's presidency represents a complex interplay of business interests and political strategy that continues to evolve. As the inauguration approaches on January 20, 2025, the implications of Trump's media ownership and its governance by the revocable trust will be scrutinized as potential conflicts of interest may arise within his administration. The challenge now lies in balancing his responsibilities as president while navigating the ownership of a media company that has become an integral part of his political identity and communications strategy.