Former President Donald Trump is poised to receive a substantial $1.25 billion bonus from his media venture, Trump Media and Technology Group (TMTG). The bonus is contingent upon TMTG’s stock price meeting certain benchmarks, which it has successfully achieved. Upon receiving the bonus, Trump will see his stake in TMTG increase significantly, giving him a commanding 65% of outstanding shares.
However, despite the sizable bonus, Trump is currently unable to access the funds due to a six-month lockout provision. This provision restricts him from using the bonus to cover his mounting legal expenses.
TMTG, the parent company of the social media platform Truth Social, has faced its own legal challenges and has experienced a significant drop in stock value since reaching its peak in March. The company’s stock, which initially traded at nearly $80 per share, has since plummeted by approximately 70%.
In addition to the earnout bonus, Trump faces a $454.2 million judgment resulting from a lawsuit filed by New York State Attorney General Letitia James, who accused his company of inflating its assets. Trump has also spent nearly $5 million on legal fees in the past month, leaving him with limited financial resources to cover these expenses.
