Trump Media is set to acquire most of WorldConnect Technologies’ (WCT) assets in a comprehensive deal that will assist the social media company in establishing its content distribution network (CDN) for streaming TV. The deal, which encompasses agreements with WCT, Perception Group, Perception TVCDN, and FORA, grants Trump Media global rights to utilize new CDN technology. Additionally, there is an option for Trump Media to potentially acquire Perception entirely in the future.
The deal is valued at up to 5.1 million shares of DJT’s stock and $17.5 million over three years, with the closing dependent on the full setup of Perception’s software. In order to finance its growth, Trump Media has secured an agreement with Yorkville Advisors to issue up to $2.5 billion in shares over three years at a 2.75% discount to the market price. This move is likely to result in increased dilution for investors in the near future.
Despite the lack of analyst coverage on DJT stock, investors can assess the last three months of trading activity. During this timeframe, DJT shares have declined by 23.38% as controversies surrounding former President Trump, who is the largest shareholder of DJT, have influenced the stock’s performance. As a result, investing decisions regarding Truth Social may require careful consideration and monitoring of market trends.
Trump Media’s acquisition of WCT’s assets marks an important milestone in its plans to introduce live TV to Truth Social platform before expanding it to other platforms. The move is expected to boost revenue growth for Trump Media and increase its market share in the social media industry.
Overall, while there are risks associated with investing in DJT stock due to ongoing controversies surrounding former President Trump and potential dilution from issuing new shares, this strategic move could lead to significant growth opportunities for Truth Social and its parent company if executed successfully.
Investors should keep a close eye on developments related to this acquisition and monitor how it impacts DJT’s financial performance moving forward