Exclusive: Trump's social media venture seeks $1 billion raise, sources say

12/2/2021 1:05:00 AM

Exclusive: Trump's social media venture seeks $1 billion raise, sources say

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Exclusive: Trump's social media venture seeks $1 billion raise, sources say

Former President Donald Trump's new social media venture is seeking to raise up to $1 billion by selling shares to hedge funds and family offices at several times the valuation it commanded in a deal with a blank-check acquisition firm in October, two people familiar with the matter said.

The deal valued Trump Media at $875 million, including debt. Trump Media is now seeking to raise up to an additional $1 billion at a valuation of close to $3 billion, to reflect Digital World's share rally after Trump supporters and day traders snapped up the stock, the sources said.

It is the clearest indication yet that Trump and the Digital World dealmakers are seeking to capitalize on the market euphoria around their venture, which has so far been fueled by its ambitious goals rather than a business that is up and running.The move represents a departure from most PIPE deals, which are typically done at $10 per share, and would result in a much greater dilution of existing Digital World investors.

Read more: Reuters »

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'Seeking to raise' Trump has a social media venture? I'm sure it's doomed to fail like every other business undertaking he has ever engaged in.

Hot housing market forces Fannie and Freddie to lend $1 million per homeInsider tells the global tech, finance, markets, media, healthcare, and strategy stories you want to know. 政府为使房屋所有权更容易实现而采取的对策是购买100万美元的抵押贷款 Winner of Dr Evil clickbait headline award

'Trump Called Us to D.C.': Capitol Rioter Who Tased Cop Blames Trump for Jan. 6 Attack. So Does a Federal JudgeJudge Amy Berman Jackson said on Wednesday that the former president and his allies “explicitly encouraged [attendees] to go to the Capitol and fight … to make sure the certification of… Trump did initiate and encourage and insight but bottom line the person decided to listen, to go- they decided not to look at facts and to follow misinformation others were able to discern as lies. Trump should be in jail

Hillary Clinton Indirectly Drags Trump — And His Breath — On TwitterThe former secretary of state tweeted a not-so-subtle jab at Trump’s love for hamburgers. Now do Monica's love for sausage Thank you so much Bryan_Conn for bringing this joy and happiness into my life. Since he introduced me into binary options my life has changed because I've been earning massively. I started my investment last 2 weeks with $500 and I've earned over $10k now. A win for 2021 A fat women should avoid remarks of other peoples weight, considering the other person doesn’t pass-out or trip because of the obesity like Hillary does!

Haugen urges lawmakers to avert impasse on social media laws | AP NewsWASHINGTON (AP) — Ex-Facebook employee and whistleblower Frances Haugen implored lawmakers Wednesday to avert the usual congressional stalemates as they weigh proposals to curb abuses on social media platforms by limiting the companies’ free-speech protections against legal liability. Hell yeah team government control of EVERYTHING that's totally gonna happen

Hot housing market forces Fannie and Freddie to lend $1 million per homeInsider tells the global tech, finance, markets, media, healthcare, and strategy stories you want to know. 政府为使房屋所有权更容易实现而采取的对策是购买100万美元的抵押贷款 Winner of Dr Evil clickbait headline award

Trump Media & Technology Group, which has yet to roll out the social media app it says it is developing, already stands to receive $293 million if its deal to list in New York through a merger with blank-check firm Digital World Acquisition Corp (DWAC..Rodriguez said , adding, “I’m sorry.By.

O) is completed. The deal valued Trump Media at $875 million, including debt. Even the government is shelling out more and more for them. Trump Media is now seeking to raise up to an additional $1 billion at a valuation of close to $3 billion, to reflect Digital World's share rally after Trump supporters and day traders snapped up the stock, the sources said. And he’s not a bad guy, it sounds like. Register now for FREE unlimited access to reuters. Blame the Housing and Economic Recovery Act of 2008 for the government backing high-six-figure mortgages in the name of affordable housing.com Register It is the clearest indication yet that Trump and the Digital World dealmakers are seeking to capitalize on the market euphoria around their venture, which has so far been fueled by its ambitious goals rather than a business that is up and running.

Digital World shares were valued at $10 each in the deal with Trump Media. The law is meant to make it easier for homebuyers to borrow cash.” Judge Berman Jackson is presiding over Rodriguez’s case in addition to Peterson’s. Trump Media is now looking to secure a so-called private investment in public equity (PIPE) that would value Digital World shares closer to their recent price, the sources said. Digital World shares, which were trading down 6% before news of the $1 billion raise, rallied to close up 7% at $44. Yet the record home-price inflation seen through 2021 will soon require Fannie and Freddie to buy mortgages worth roughly $100,000 more than last year's.35 on Wednesday. No one was carried,” she said. The move represents a departure from most PIPE deals, which are typically done at $10 per share, and would result in a much greater dilution of existing Digital World investors. The conforming loan limit for single-family properties rose to $647,200 from $548,250, according to a press release.

The sources added that Digital World shares may be valued based on a 20% discount of their 10-day, volume-weighted average price. The sources requested anonymity because the matter is confidential. In areas where median home values are much higher than the baseline limit, the ceiling for one-unit properties will be $970,800, according to FHFA.” Over 700 people following the riot at the Capitol so far. Trump Media and Digital World did not respond to requests for comment. Bloomberg News reported last month that the companies were seeking to raise a PIPE without any details on its terms. Metropolitan hubs in California, New York, and Washington, DC host most of the pricier counties. Most PIPE transactions are inked before a deal to take a company public is rolled out, and it is far from certain that the companies will raise the entire $1 billion they are seeking following their deal announcement.

Many Wall Street firms have snubbed the opportunity to invest, and many of the investors participating in the confidential road shows for the PIPE are hedge funds, family offices and high net-worth individuals, the sources said. Federal Housing Finance Agency Home prices climbed at a record pace through much of 2021 as historically low mortgage rates sparked a wave of pandemic-era moves. Family offices manage the wealth of the very rich and their kin. Weighing on the deal's appeal is the reluctance of many investors to associate with Trump after he was banned from top social media platforms for encouraging his supporters to participate in the Jan. Home inflation is expected to ease over the next several months, but experts forecast price growth will remain historically strong for at least another year . 6 attack on the U.S. While the median home price leaped by 18% over the past year, the average hourly wage only climbed 4.

Capitol, which was based on unsubstantiated claims of widespread fraud in last year's presidential election. Some hedge funds that backed the launch of Digital World, including Saba Capital Management and Lighthouse Investment Partners, have said they sold their shares to distance themselves from the Trump deal. The surge in prices has left Americans feeling historically pessimistic about buying a home. The deal also faces regulatory risk. U. While that's up from the four-decade low of 32% seen in September, it still signals sour attitudes toward the white-hot market.S.

Senator Elizabeth Warren asked Securities and Exchange Commission Chairman Gary Gensler last month to investigate the planned merger for potential violations of securities laws around disclosure. Fannie Mae's latest housing forecast estimates home-price inflation peaked in the third quarter and will move lower over the next two years. The SEC has declined to comment on whether it plans any action. read more Trump Media and Digital World have asked investors to finalize commitments to the PIPE by the middle of December, the sources said. The market could heal even faster if supply-chain problems fade, the team added. In a PIPE road show attended by one of the sources, investors were asked to commit between $10 million and $20 million. Neither Trump nor Digital World executives made an appearance, and the investor presentation was led by David Boral, the president of EF Hutton, an investment bank that advised Digital World on the deal, the source said. Difficulties with rehiring also crimped construction and kept homebuilding from accelerating.

A Trump Media representative was also in attendance, the source added. Trump has also been personally involved. For now, home demand continues to dramatically outpace supply. He has been calling some investors to ask them to make a commitment to the PIPE of more than $100 million, the second of the sources said. Investors attending the road show were shown a demo from the planned social media app, called TRUTH Social, which looked like a Twitter feed, the sources said. And so will the government, in the form of Fannie and Freddie. BIG PLANS Trump has said he is launching his own social media app to stand up against the companies that have barred him from their platforms.

He had 89 million followers on Twitter, 33 million on Facebook and 24. Sign up for notifications from Insider! Stay up to date with what you want to know.5 million on Instagram at the time he was blocked, according to a presentation on his company's website. Since Trump was voted out of office last year, he has repeatedly dropped hints that he might seek the presidency for a third time in 2024. For you. Special purpose acquisition companies such as Digital World had lost much of their luster with retail investors before the Trump media deal came along. Many of these investors were left with big losses after the companies that merged with SPACs failed to deliver on their ambitious financial projections.

TRUTH Social is scheduled for a full rollout in the first quarter of 2022, and is the first of three stages in the Trump Media plan, followed by a subscription video-on-demand service called TMTG+ that will feature entertainment, news and podcasts, according to the news release. In a slide deck on its website, the company envisions eventually competing against Amazon.com's AWS cloud service and Google Cloud. Register now for FREE unlimited access to reuters.com Register Reporting by Krystal Hu in New York Additional reporting by Echo Wang in New York Editing by Greg Roumeliotis and Leslie Adler Our Standards: More from Reuters Sign up for our newsletter Subscribe for our daily curated newsletter to receive the latest exclusive Reuters coverage delivered to your inbox.

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