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Eugene

(61,964 posts) Tue Apr 23, 2024, 08:26 PM Apr 23

Donald Trump nabs additional $1.2 billion 'earnout' bonus from DJT stock

Donald Trump nabs additional $1.2 billion 'earnout' bonus from DJT stock (Yahoo! Finance)

Trump Media & Technology Group stock (DJT) has hit a milestone that will secure Donald Trump an additional $1.2 billion.

According to a regulatory filing, Trump is entitled to an additional 36 million shares if the company's share price trades above $17.50 "for twenty out of any thirty trading days" over the next three years.

Trump secured his "earnout" bonus at the end of Tuesday's trading session, with the stock trading around $33 a share at the close.

https://finance.yahoo.com/news/donald-trump-nabs-additional-12-billion-earnout-bonus-from-djt-stock-191638928.html

7 replies

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Donald Trump nabs additional $1.2 billion 'earnout' bonus from DJT stock (Original Post) Eugene Apr 23 OP

WTF is this? apnu Apr 23 #1

This must be how the rich get rich for failing most of the time. Irish_Dem Apr 23 #2

It isn't all that uncommon FBaggins Apr 25 #7

Because what Truth Social needs is more shares Johonny Apr 23 #3

More profit for Trump and diluting the stock for other shareholders. keithbvadu2 Apr 23 #4

It is not rigged. former9thward Apr 23 #5

It's called failing upwards Blue Owl Apr 24 #6

apnu

(8,759 posts)

1. WTF is this?

Reply to Eugene (Original post)

Tue Apr 23, 2024, 08:32 PM

Apr 23

The stock has to be over $17.50 for any 20 days out of any 30 days over the next 3 years???

Who thinks this weak stuff up? This is like the rich slapping themselves on the back for managing to breathe?

Irish_Dem

(47,473 posts)

2. This must be how the rich get rich for failing most of the time.

Reply to apnu (Reply #1)

Tue Apr 23, 2024, 08:43 PM

Apr 23

FBaggins

(26,772 posts)

7. It isn't all that uncommon

Reply to apnu (Reply #1)

Thu Apr 25, 2024, 01:19 PM

Apr 25

Earnouts are added to deals when there’s a disagreement over the value of a company. The deal can still get done by setting the transaction at the lower price and committing to an additional payment if market action proves that the higher value was the correct one.

In this case, however, it probably won’t have much impact on Trump himself. He’ll own a larger percentage of the company, but the earnout will increase the number of shares without changing the value of the company (thus diluting the value of each share)