Top billionaire GOP megadonor had big stake in Trump's Social deal: report
Source: Salon
Jeff Yass, a TikTok shareholder, was biggest institutional shareholder in company that merged with Trump Media company last week, according to the New York Times.
A December filing shows that Yass' firm Susquehanna International Group owned 2% of Digital World Acquisition Corp, which on Friday merged with Trump Media & Technology Group, which owns Truth Social.
Read more: https://www.salon.com/2024/03/25/top-billionaire-megadonor-had-big-stake-in-company-in-trumps-truth-social-deal-report/
I knew Susquehanna Int'l Group was the largest institutional owner, but I didn't know who runs Susquehanna. Digital World Acquisition is up to $24 today or 33%. Trump Media & Technology is trading at $58, up from $14 a year ago.
PT Barnum was right; however, the people who got out of tulips at the right time did make money.
pfitz59
(10,381 posts)And how legal is it?
Marthe48
(16,962 posts)I wonder if these stories could in any way be related?
LetMyPeopleVote
(145,243 posts)Meme stocks rely on the greater fool theory. I was amused to see that DWAC/Trump Media is classified as a meme stock where the value is due to personality and not due to the real value of issuer of the meme stock. This article is a good discussion of the meme nature of DWAC/TMT.
https://www.vanityfair.com/news/donald-trump-truth-social-media-merger
Truth Social is a bad imitation of Twitter, where Trump was an unavoidable presence long before he ran for president. Its chock full of stale red-pilled memes, MAGA conspiracy theories, and of course, Trump. Thats the main draw. Truth Social is the only place the former president now regularly posts his unfettered thoughts......
DWAC is best thought of as a meme stock. You may remember the meme stock fad from when retail investors on Reddit successfully coordinated a short squeeze with GameStop stock, before glomming onto a series of other millennial nostalgia brands like AMC Entertainment, BlackBerry, and Bed Bath & Beyond. Meme stocks are often publicly traded companies that attract an inordinate percentage of individual investors and their stock performance fluctuates in a way thats significantly divorced from the reality of their underlying business. Combine those two trends and youll start to see why Trumps media company could be valued at roughly $9 billion if it merges with DWAC.
Jay Ritter, a finance professor at the University of Florida, says meme stocks often depend on the greater fool theory of investing, meaning rational investors might buy in expecting the stock price to rise and betting that they can sell their shares to a greater fool willing to buy them at a higher price. In this case, however, Ritter speculates there is an inordinate number of individual retail investors compared to institutional investors, such as hedge funds, that normally own SPAC shares prior to a merger. Here youve got ideology involved [too]as far as I can tell, the vast majority of DWAC investors are Trump political investors, and theyre to some degree putting their money where their mouth is My suspicion is most of them have bought the stock as a show of political support. In this way, Trump is conducting yet another public fundraising from his supportersthis time through the public markets.
Idiots who purchase meme stocks are betting that they can get out before the other idiots figure out that the stock is worthless