In a major development, Truth Social (NASDAQ:DJT) is set to experience movement in the stock market tomorrow. This comes after the social media company announced an all-stock deal to acquire the majority of WorldConnect Technologies’ (WCT) assets.
The acquisition of these assets will assist Trump Media in establishing its content distribution network (CDN) for streaming TV. This initiative will begin with the Truth Social platform before extending to other platforms. This move is part of a three-step plan unveiled in April to introduce live TV to Truth Social.
Included in the deal are agreements with WCT, Perception Group, Perception TVCDN, and FORA, granting Trump Media the global rights to utilize new CDN technology. The deal also offers the option to fully purchase Perception in the future. Valued at up to 5.1 million shares of DJT’s stock and $17.5 million over three years, the deal will be finalized once Perception’s software is fully operational.
Additionally, Trump Media has secured a deal with Yorkville Advisors to issue up to $2.5 billion in shares over three years at a 2.75% discount to the market price to support its growth. Consequently, investors can anticipate further dilution as they monitor the last three months of trading reveals a decline in shares since May, attributed to the controversies surrounding former President Trump, DJT’s largest shareholder. As such, DJT shares have decreased by 23.38% during this period.
Despite this decline, there are currently no analysts covering DJT stock due to lack of interest or concerns about its financial viability as a new social media platform.
Overall, while investors may be wary of investing in Truth Social due to its association with former President Trump and his controversial views on certain topics
