Judge Clears Way for Trump Media to Hold Merger Vote – A Delaware judge has declined to block a shareholder vote scheduled for March 22 regarding a merger involving Trump Media & Technology Group, which could potentially result in a $4 billion gain for former President Donald Trump.
Delaware Chancery Court Judge Sam Glasscock III stated on Saturday that he would not delay the vote despite objections from Trump Media co-founders Andy Litinsky and Wes Moss, who claim that former President Donald Trump intends to diminish their 8.6% ownership in the company through the merger.
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Litinsky and Moss, both former contestants on Trump’s TV show The Apprentice who later teamed up with him to establish Trump Media, allege that Trump aims to increase the number of shares in the company to reduce their stake, potentially generating billions to settle legal liabilities.
Glasscock opted not to schedule a hearing on the contested merger before the March 22 vote, suggesting that if Trump agrees to place the additional shares in an escrow account during the dispute, it might resolve the matter. Digital World Acquisition Corp., the blank-check company set to conduct the vote, has already agreed to escrow the disputed stock in a separate lawsuit brought by Patrick Orlando’s ARC Global Investments II.
ARC contested the proposed conversion rate for its founder’s stake, arguing that it should receive a larger share in the merged entity. Orlando is the former CEO of Digital World. Earlier this week, Lori Will, the Chancery judge overseeing the case, rejected a request to expedite the lawsuit, citing the existence of the escrow. Digital World’s stock has experienced a significant increase in value this year, potentially valuing Trump’s ownership in the billions, at least on paper.
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This surge in value offers a potential financial lifeline for the former president, who is grappling with legal liabilities including hundreds of millions in judgments from New York’s lawsuit targeting allegedly inflated asset valuations and advice columnist E. Jean Carroll’s lawsuit concerning statements Trump made regarding her accusations of sexual assault. Trump posted a bond of nearly $92 million in the latter case on Friday.