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