Trump Media is set to announce a major acquisition in the stock market tomorrow, which could impact shares of Truth Social (NASDAQ:DJT). The social media company has agreed to acquire the majority of WorldConnect Technologies’ (WCT) assets in an all-stock deal.
The acquisition is part of a three-step plan announced in April to introduce live TV to Truth Social. The first step will involve establishing a content distribution network (CDN) for streaming TV through the Truth Social platform. This will be followed by the introduction of live TV on other platforms.
The deal includes agreements with WCT, Perception Group, Perception TVCDN, and FORA, granting Trump Media global rights to use new CDN technology. Additionally, there is an option to fully purchase Perception 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 completion pending once Perception’s software is operational.
Trump Media has also 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 in order to support its growth. This means investors can expect further dilution in DJT shares as the company expands its operations.
Currently, there are no analysts covering DJT stock, but monitoring the last three months of trading reveals a decline in shares since May due to controversies surrounding former President Trump and his ownership stake in DJT’s largest shareholder. As a result, DJT shares have decreased by 23.38% during this period.
Overall, this acquisition marks an exciting development for Truth Social and its parent company Trump Media as they continue their efforts to establish themselves as major players in the streaming TV space.
Investors should keep an eye on any developments regarding this acquisition and how it may impact DJT’s stock performance moving forward.
In conclusion, shares of Truth Social (NASDAQ:DJT) could experience movement tomorrow after Trump Media announces an all-stock deal to acquire the majority of WorldConnect Technologies’ (WCT) assets
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