United Atlantic Ventures Sells Stake in Trump Media & Technology Group
In a significant development for the investing world, United Atlantic Ventures, a major stakeholder in Trump Media & Technology Group, has divested itself of more than 7.5 million shares in Donald Trumpβs Truth Social platform. According to a recent regulatory filing, the venture capital firm held approximately 7.525 million shares as of March, which accounted for around 4% of the companyβs total outstanding shares, as reported by financial data firm FactSet. This move comes as the landscape surrounding Trump Media shifts dramatically.
Ownership Dynamics
In the complex hierarchy of Trump Media & Technology Group, Donald Trump stands out as the largest individual shareholder, boasting about 60% of the stock. The company’s stock is traded under the ticker "DJT"βa nod to Trump’s initials. The recent selling action by United Atlantic Ventures marks a notable change in the ownership structure and reflects broader confidence levels in the companyβs future.
The filing reveals a striking transformation in United Atlantic’s shareholding status, with a mention of just 100 shares as of the latest updateβan indication that they have completely exited their prior position.
The Players Behind United Atlantic Ventures
United Atlantic Ventures was founded by two former contestants from Trumpβs reality television show, "The Apprentice"βAndrew Litinsky and Wes Moss. Initially, they played a pivotal role in launching the Truth Social network, which aimed to offer a conservative alternative to mainstream social media platforms. However, relationships soured between the founders and the business, resulting in a series of lawsuits.
In March, just one day prior to the DJT stock listing, Trump Media filed a lawsuit against Litinsky and Moss, accusing them of mismanagement and seeking to retract their shares, which initially totaled 8.6 million as part of their original deal. This legal back-and-forth has further complicated the operational landscape for Trump Media.
The Timing of the Share Sale
It’s important to note that the precise timing of United Atlantic Ventures’ sale remains unclear. However, the revelation follows the expiration of a lock-up period that typically prevents insidersβincluding major shareholders like Trumpβfrom selling their shares immediately following an initial public offering (IPO). These lock-up agreements are standard practice to stabilize stock prices after a company goes public, guarding against large-scale sell-offs that could devalue shares.
If it turns out that the shares were sold on September 20, the very first day post-lock-up, the gross proceeds from that sale would have been estimated at around $102 million. However, the stock faced a subsequent decline, plummeting to a low of $11.75 by September 24. This drop would have reduced the saleβs value to approximately $89 million, showcasing the volatile nature of the stock market.
Market Reactions and Stock Performance
After reaching its nadir on September 24, DJT shares have experienced a slight rebound, closing trading on a recent Thursday at $14.13. Nevertheless, this does not overshadow the significant loss incurred since the stock debuted, having fallen approximately 82% from its all-time peak of $79.38 recorded on March 26. Such volatility raises questions among investors about the sustainability of Trump Media’s business model and the broader implications for its main project, Truth Social.
Ongoing Developments
As the situation continues to unfold, Trump Media & Technology Group has yet to issue an official comment regarding the sale of shares by United Atlantic Ventures. This silence leaves investors and market watchers speculating about the potential strategies that may be at play as conflicts both internal and external threaten to impact the companyβs trajectory.
With the interplay of personal relationships, legal disputes, and market performance, the narrative surrounding Trump Media & Technology Group is one of high stakes and dynamic shiftsβmirroring the complexities often found in the world of startup investments and the media landscape governed by polarizing figures.