President Trump has thrown a curveball into the world of social media and high-stakes litigation. The man of the hour, none other than Trump himself, has initiated a lawsuit against two co-founders of the Trump Media & Technology Group Corp., the proud parent of Truth Social, which recently made its splashy debut in the public market.
The legal skirmish, set against the sun-soaked backdrop of Florida state court on March 24, centers around Andy Litinsky and Wes Moss. These aren’t just any co-founders; they’re accused of improperly setting up the company, effectively disqualifying themselves from owning a golden ticket—an 8.6% stake in the company valued at a jaw-dropping $606 million, according to Bloomberg Law. In the world of high finance and digital real estate, that’s not just chump change; it’s empire-building wealth.
On the flip side, Litinsky and Moss aren’t taking this lying down. They’ve lobbed back with their own lawsuit in Delaware Chancery Court, claiming they were promised a stake in Truth Social that has yet to materialize. It’s like watching a high-stakes poker game where both players claim the other is bluffing.
Adding fuel to this fire is the rollercoaster ride that is Trump Media’s stock performance. After merging with a special purpose acquisition company (SPAC), the stock has been on a wild ride that would make even seasoned Wall Street veterans reach for the Dramamine. A recent securities filing unveiled a staggering $58 million loss for the company in 2023, alongside a revenue stream that’s more of a trickle than a flood.
Yet, amidst this financial turmoil, Trump’s stake in the company ballooned his net worth by $6 billion in a single day of trading, marking the most lucrative day of his career. Talk about a silver lining. The stock, which at one point reached almost $80 per share, has become a beacon for investors and critics alike, symbolizing not just a financial venture but an investment in Trump’s brand and political future.
As the saga unfolds, analysts are keeping a keen eye on Trump Media, noting that a significant uptick in quarterly revenues is necessary to sustain such a lofty valuation. Meanwhile, the stock has become a darling among Trump supporters and speculators alike, with its volatility providing both opportunities for quick profits and potential headaches.