Shares of Trump Media closed up 5.58% on Friday at $14.76 per share after major shareholder United Atlantic Ventures, LLC, sold nearly 11 million shares in the company the day before. UAV, an investment partnership of former “Apprentice” contestants Andrew Litinsky and Wes Moss, got rid of almost its entire stake in the company, keeping only 100 shares. Trump Media runs the social media app Truth Social, with former president Donald Trump as its largest shareholder. Litinsky and Moss co-founded the company with Trump in 2021 but have since had legal disputes with Trump Media over their shares.
UAV’s decision to sell its 5.4% stake comes after the expiration of a lockup agreement on Sept. 19, which had prevented Trump and other early investors from selling their shares. The Securities and Exchange Commission filing on Thursday did not disclose the exact amount UAV made from selling its shares, but estimates suggest that it might have received between $128 million and $170 million. Despite the recent uptick in share prices, Trump Media’s stock was down 77.76% overall since its market debut in late March after merging with a special purpose acquisition company. As of Friday’s close, the company’s market capitalization stood at $2.954 billion.
Trump Media’s shares had been on a six-day losing streak since the lockup restrictions expired, hitting a new 52-week low on Monday before finally bouncing back on Tuesday. Trump, who holds nearly 57% of the outstanding shares, has stated that he has no intentions of selling his stake in the company. The success of Truth Social, the company’s main product, heavily relies on Trump’s popularity and continued use of the platform. The recent increase in share prices may point towards a more positive trend for the company, but the overall performance since its debut on the Nasdaq has been disappointing.
Litinsky and Moss, who were once close collaborators with Trump in founding Truth Social, are now at odds with the former president over their shares in the company. UAV’s decision to offload its stake in Trump Media indicates a significant shift in their relationship with the company and Trump himself. The exact reasons behind their decision to sell their shares have not been disclosed, but it could be related to their disagreements with Trump Media or a desire to liquidate their investment in the company. The sale of nearly 11 million shares by UAV has caused some uncertainty among investors and raised questions about the future direction of Trump Media.
Moving forward, Trump Media will need to navigate the challenges of maintaining and growing its user base on Truth Social while addressing the concerns of shareholders and investors. The company’s heavy reliance on Trump’s involvement in the platform poses a unique challenge that could impact its long-term viability. As the company continues to face legal disputes and internal conflicts with key stakeholders, it remains to be seen how Trump Media will fare in the highly competitive social media landscape. The recent increase in share prices may offer some relief to investors, but the overall performance of Trump Media since its market debut suggests that there are still significant hurdles to overcome in order to achieve sustained success.
