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I know the Trump fans here will all be betting their entire life savings on Trumps new venture, Truth social. Symbol DJT.
If he can make America great again just imagine what he will do with a media company! Be sure to get on board the Trump train! You will be like really, really rich!

Of course the prospectus for the deal is a doozy.
Here are some of the highlights...

"In the nine months to September 2023, the business suffered a $10.6 million operating loss."
"A number of companies that were associated with President Trump have filed for bankruptcy."
"There can be no assurances that TMTG will not also become bankrupt."
"A number of companies that had license agreements with President Trump have failed. There can be no assurances that TMTG will not also fail."
"The Trump Taj Mahal, which was built and owned by President Trump, filed for Chapter 11 bankruptcy in 1991." recalls the stock-market prospectus.
"The Trump Plaza, the Trump Castle, and the Plaza Hotel, all owned by President Trump at the time, filed for Chapter 11 bankruptcy in 1992."
"Trump Hotels & Casino Resorts, founded by Trump in 1995, “filed for Chapter 11 bankruptcy in 2004,” it continues. “Trump Entertainment Resorts, Inc., the new name given to Trump Hotels & Casino Resorts after its 2004 bankruptcy, declared bankruptcy in 2009."
"Trump Shuttle, Inc., launched by President Trump in 1989, defaulted on its loans in 1990 and ceased to exist by 1992." the prospectus continues, referring to the short-haul airline.
"Trump University, founded by President Trump in 2005, ceased operations in 2011 amid lawsuits and investigations regarding that company’s business practices."

This, let me remind you, is not the "fake-news, liberal media talking." It’s the stock-market prospectus for Trump’s own company!

"Trump Vodka, a brand of vodka produced by Drinks Americas under license from The Trump Organization, was introduced in 2005 and discontinued in 2011,” it goes on. “Trump Mortgage, LLC, a financial services company founded by President Trump in 2006, ceased operations in 2007. GoTrump.com, a travel site founded by President Trump in 2006, ceased operations in 2007. Trump Steaks, a brand of steak and other meats founded by President Trump in 2007, discontinued sales two months after its launch."

But Truth Social will be different, right?

https://www.sec.gov/Archives/edgar/data/1849635/00...

One other crucial intangible to consider...

The major downside of going public with an Initial Public Offering is that you're going public. DUH. You are now required to file quarterly statements regarding the company financials including a full balance sheet, income statement and special SEC filings involving any executive compensation arrangements undertaken. A public firm has no more than 35 days to complete this task from the close of each financial quarter.

What evidence do any potential investors have that the parent SPAC or the spun-off DJT entity have located competent accounting professionals to manage the books of this new company and generate the required paperwork in a timely manner? Imagine how bad it would look for a company losing $30+ million cumulatively since creation that is integral to a key shareholder trying to cash out a huge share immediately declaring on day 125 of its existance that its first quarterly report is going to be a bit late. Or maybe they file it and a REAL accountant takes a look at it in ten minutes and spots a huge flaw in the numbers reflecting incompetence or more fraud.

That could trigger a freeze on ANY of the SPAC investors' abilty to exercise their shares if those initial required reports are botched.

At this point, it seems guaranteed that the operation of DJT the company will result in a long trail of future litigation. No one who would deal with Trump has a clue about operating a company with open books. And these books are going to be watched closer than any IPO in history by people one hundred times as smart as anyone Trump can find to work for him.


WTH

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