Nicklaus: So far Trump’s media company is all hype and no substance | David nicklaus


FILE – In this file photo from Jan.6, 2021, President Donald Trump speaks at a rally protesting the certification of Joe Biden’s electoral college as president in Washington. Trump filed a lawsuit to block disclosure of documents to the Jan.6 select committee, challenging President Joe Biden’s decision to release them. Trump claims in the lawsuit that the request “is almost unlimited in scope” and is looking for unreasonably unrelated documents to date. (AP Photo / Evan Vucci, file)

Evan vucci

Unless Donald Trump is a modern-day Midas King, able to build wealth with a simple touch, the speculative fever over his digital media business is hard to justify.

Trump unveiled his new Trump Media & Technology Group on October 20 and agreed to merge it with a public shell company, Digital World Acquisition Corp. DWAC shares hit the stratosphere, dropping from less than $ 10 to $ 175 within two days of the announcement.

They have since fallen, but on Friday the shares were worth $ 67.75 each, valuing the company at $ 2.6 billion. That’s a lot for a company whose only assets are $ 293 million in cash – and the hype that goes with Trump’s name.

In a investor slideshow, Trump Media announced plans to launch a social network that would compete with Twitter and Facebook, both of which have banned Trump from their platforms. It also plans to compete with Netflix and Disney + by offering a full streaming service of “unawakened entertainment”.

If that’s not enough to kill giants, Trump Media suggests that as a “long-term opportunity,” it will compete with Amazon, Google and Stripe in cloud services and payments.

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