Once again, Donald Trump is defying the establishment. The blank cheque merger phenomenon that swept US capital markets during the pandemic has largely abated. Cash shell companies brought a series of immature businesses to public markets. High interest rates and low profits quickly sent many into the dustbin. Regulators stepped in to add shareholder protections.
But Trump’s nascent venture, Trump Media & Technology Group, has closed its Spac merger, against long odds. On Tuesday, in early trading, TMTG shares soared to a level that implied a diluted equity valuation of $14bn.
The stake of the former president and current Republican candidate is valued at $5.5bn. In its investor presentation shared in December, TMTG estimated that its valuation could perhaps touch only $1.6bn on aggressive forecasts.