President-elect Donald Trump transferred 114.75 million shares, or 53% of Trump Media & Technology Group’s outstanding stock, to a revocable trust controlled by his son, Donald Trump Jr., causing the company’s shares to slide over 7%. The move is seen as a way for Trump to offload shares without selling them himself, according to University of Florida finance professor Jay Ritter.
The transfer gives Donald Trump Jr. significant control over the company, which owns the Truth Social media platform, valued at over $7 billion. However, Trump retains indirect ownership through the trust and can change its terms or remove his son as trustee if needed.
Trump’s decision comes after he previously stated he had no intention of selling his shares in the company. Analysts say the move may also be aimed at avoiding potential conflicts of interest for the incoming president, but experts believe Trump still maintains significant control over the trust.
The transfer does not necessarily signal a sale or divestment of Trump’s stake, as his son can sell some or all of the shares, claiming it is just normal diversification. However, this could be seen as a way to maintain Trump’s influence on the company without directly selling his shares.
Source: https://eu.usatoday.com/story/money/markets/2024/12/20/trump-media-shares-fall-after-he-puts-his-stake-in-revocable-trust/77102661007