Trump seeks to sell off $2 billion in media company shares
- Donald Trump's media company filed a registration with the SEC for potential sale of over $2 billion in shares, causing stock prices to drop by 5%.
- The transfer of shares to Trump's trust, which is managed by his son, has raised investor concerns about the possibility of mass sell-offs.
- This development reflects ongoing investor caution and skepticism about the company's future amid substantial price declines over the past year.
In the United States, Donald Trump's media company, Trump Media and Technology Group, filed a registration with the Securities and Exchange Commission on a recent Tuesday, allowing for the potential sale of his shares. This filing suggests that Trump might sell his stake, valued at over $2 billion, which immediately led to a drop in the company's stock price by approximately 5 percent. Trump's transfer of shares to his trust, controlled by his son, Donald Trump Jr., occurred in conjunction with concerns from investors about possible mass sell-offs that could further decimate stock prices. While Trump's media company emphasized that there was no open window for share sales, the registration itself fueled speculation and brought about reactions of caution among investors, resulting in their stocks being dumped in fear of a broader sell-off. Despite previously expressing no intent to sell his shares and stating he doesn't need the money, the SEC filing raised eyebrows regarding Trump's actual intentions. Holding around 53 percent of the total shares, he remains the largest shareholder of Trump Media. The volatile nature of the stock market following Trump's election win saw initially promising stock prices that have since plunged by about 40 percent over the year. Furthermore, the filing included the registration of shares held by other entities, including Yorkville Advisors, which controls around 17 million shares tied to retail investment products. Pam Bondi, the U.S. Attorney General, also had shares registered under the same filing due to previous consulting work, and she announced plans to sell her stake within 90 days in accordance with an ethics agreement. As investors continue to react, the implications of Trump's share transfer can reverberate through the market, and the company's narrative remains a point of contention among stakeholders. With unclear immediate motivations and the market's reaction to even potential actions, many are left to contemplate the future of Trump Media as it navigates a challenging landscape.