A major shareholder of Trump Media, who was also a contestant on ‘The Apprentice’, has divested nearly his entire holding in the social media company associated with former President Donald Trump.
The shares sold were valued at approximately $100 million, notwithstanding recent volatility in the company’s stock price.
The co-founder of Trump Media & Technology Group, Andy Litinsky, has sold the majority of his shares, retaining just 100 shares, regulatory filings reveal.
This is a steep fall from the 7.5 million shares that United Atlantic Ventures, managed by Litinsky, held in late March.
The sale comes amid ongoing legal battles between Litinsky and Trump Media over these shares.
Initially, insiders faced restrictions prohibiting them from selling their shares in Trump Media, but these lock-up conditions seem to have been lifted recently.
Litinsky’s participation in ‘The Apprentice’ had previously built Trump’s image as a successful businessman.
The key question is whether former President Trump would sell his significant stake. However, he confirmed earlier in the month that he has no plans to sell.
Trump owns approximately 114.75 million shares in Trump Media.
This stake was valued at an impressive $6.2 billion as recently as mid-May, but the valuation has plunged to about $1.6 billion due to a decline in stock price.
Trump Media’s stock price has experienced a dramatic drop in recent months, hitting record lows earlier this week.
Following the announcement of Litinsky’s share sale, the stock dipped by about 1% in after-hours trading.
The market’s reaction reflects ongoing investor concerns regarding the company’s future prospects.
The sale of shares by a co-founder sends a strong signal to the market, often interpreted as a lack of confidence in the company’s future.
Such a substantial divestiture may influence other shareholders’ decisions and potentially affect the company’s valuation further.
Regulatory disclosures of significant share sales provide transparency to the investors and the market at large.
They also prompt analysis regarding the reasons for such sales, speculating on internal challenges within the company.
The volatility in Trump Media’s stock highlights the broader market uncertainties and the specific challenges facing the company.
The future of Trump Media remains uncertain in light of these developments.
The company needs to address internal conflicts and restore investor confidence to stabilise its stock price.
The divestment by a major shareholder highlights significant uncertainties surrounding Trump Media.
The company’s future will depend on its ability to manage internal disputes and regain market confidence.
