Trump Media Co-Founder Dumps Nearly Entire Stake As Company Valuation Plummets
Andy Litinsky, a former contestant on Donald Trump’s reality TV show, The Apprentice, and co-founder of Trump Media & Technology Group (NASDAQ: DJT), has sold almost his entire stock holding in the company.
According to regulatory filings released on Thursday, Litinsky reduced his stake from over 7.5 million shares to a mere 100 shares. Based on current stock prices, this equates to a sale of roughly $100 million worth of shares.
This move is significant, given that insiders of Trump Media, the parent company of Truth Social, were previously restricted from offloading their shares by lock-up provisions that appear to have now been lifted.
The sale of Litinsky’s shares may be linked to an ongoing legal dispute between him and Trump Media. While an attorney for United Atlantic Ventures—Litinsky’s holding entity—has not commented on the matter, the legal wrangling appears to have spurred his decision to offload the shares. This aligns with broader turmoil surrounding Trump Media as it contends with stock price volatility and various legal and financial challenges.
As of late March, United Atlantic Ventures held just over 7.5 million shares in Trump Media, which has seen a tumultuous market performance. The stock has experienced significant declines in recent months, contributing to a reduced valuation for both the company and its majority shareholder, former U.S. President Donald Trump.
Trump’s stake in Trump media
Trump remains the dominant shareholder in Trump Media, holding 114.75 million shares, according to recent filings. The former president’s stake was valued at $6.2 billion as recently as mid-May, with DJT stock trading at a peak.
However, a sharp downturn in the share price has dramatically reduced the valuation of Trump’s stake to approximately $1.6 billion based on Thursday’s closing price of $13.98 per share. This marks a significant decline for the former president’s financial investment in the company.
Trump, however, has stated publicly earlier this month that he has no intentions to sell any part of his stake, despite the volatile and declining stock price. In contrast to Litinsky’s divestment, Trump’s decision to hold his shares appears to be a commitment to maintaining his position within Trump Media and its future prospects.
The sale of Litinsky’s shares comes at a time when Trump Media is facing significant market challenges. Following the announcement of the stock sale, Trump Media’s share price dipped by about 1% in after-hours trading. The company’s stock has seen a steep decline from its heights earlier in the year, causing fluctuations in market valuation and prompting concerns about its long-term financial health.
Trump Media’s financial struggles are tied to the overall performance of Truth Social, its flagship social media platform, which has faced operational hurdles and public scrutiny. Despite initially being heralded as a conservative-friendly alternative to mainstream social media, Truth Social has encountered both technical and political challenges that have impacted its user growth and advertising revenue.
TMTG was launched with the ambition to establish a media empire anchored around Truth Social. It was pitched as an alternative to platforms like Twitter and Facebook, aiming to serve a user base that felt disenchanted by what they perceived as bias against conservative viewpoints on traditional social media networks. However, the company has struggled to live up to its initial promise, experiencing a mix of technical glitches, moderation challenges, and financial uncertainty.
Trump’s name and brand recognition initially gave the company a boost, helping attract investors and users. However, market volatility and difficulties in expanding the platform have hindered sustained growth. The company has also faced various investigations and challenges, including those related to potential violations of securities laws.
Information for this briefing was found via CNN and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
