Donald Trump is about to become $1.2 billion richer. Here's why. (CBS) [View all]
Donald Trump is about to become $1.2 billion richer. Here's why. (CBS)
Donald Trump is about to see his fortune grow by $1.2 billion.
The former U.S. president is set to receive a so-called earnout bonus of 36 million shares in his newly public company, Trump Media & Technology Group, as part of an incentive that was created for the company's public market debut in March, according to a regulatory filing.
For Trump to get the additional shares, which are on top of his current 57% ownership stake of 78 million shares, Trump Media needs to trade at or above $17.50 per share for any 20 trading days within a 30 trading day period. The stock, which trades under Trump's initials, DJT, marked its 20th trading day on Tuesday, which means that Trump qualifies for the bonus given that the stock didn't plunge below $17.50 today.
At today's closing price of $32.56 per share, that values Trump's earnout at $1.2 billion.
Still, Trump won't be able to cash out the new stock immediately. He and other Trump Media executives are largely restricted from selling their shares for roughly another five months. Such lockup periods, as they're known, are common with newly listed companies because they keep insiders from dumping shares shortly after a company goes public, which can destabilize a stock and cause it to sink in value.
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