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Trump's media collapses by 6 percent – ​​Trump can now sell his shares

Top line

Shares of Trump Media & Technology Group fell more than 6% in trading on Friday after a ban on former President Donald Trump selling shares in Truth Social's parent company expired, even though Trump had said he would not sell his stake.

Key data

Trump Media shares fell below $13.80 at 9:35 a.m., after another decline to a third consecutive record low on Thursday, after closing down nearly 6%.

A lock-up period that prevented Trump from selling any portion of his roughly 60 percent stake in the company ended Thursday after the stock price closed above $12 a share on at least 20 of 30 trading days beginning Aug. 20.

The expiration of the ban also gives other shareholders who own 5 percent or more of the shares or hold senior management positions the opportunity to sell their shares.

Trump said last week he had “absolutely no intention” of selling his shares in Truth Social's parent company, whose shares fell more than 18 percent this week.

The value of Trump's stake – a total of 114.75 million shares – fell from $2 billion last Friday to $1.58 billion at today's share price.

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Large number

81.4%. This is how much the value of Trump Media shares has fallen since their high of $79.38 on March 25.

Surprising fact

According to Bespoke Investment Group, Trump Media has been the worst-performing stock in the Russell 1000 Index since August 5.

Important background

Trump Media's IPO in March began a lock-up period, a standard procedure for newly public companies in which the company must meet one of three factors to be lifted. In a filing with the U.S. Securities and Exchange Commission, Trump Media said the ban would be lifted after the first six months of trading as a standalone company, after shares have traded at about $12 for 20 of 30 trading days beginning Aug. 23, or as a transaction – such as a merger – in which shareholders could sell their shares at the same price. Despite the lifting of the ban, Trump may find it “very difficult” to sell his shares, Bloomberg reported, as he faces additional regulatory restrictions.

Forbes Rating

After losing about $106 million in the demise of Trump Media on Thursday, Trump now has an estimated net worth of about $3.8 billion. His wealth grew from about $4.1 billion when the company went public in March to more than $8 billion.

More information

ForbesTrump's ban on selling DJT shares could end today – he says he will not sellFrom Derek Saul
ForbesTrump's net worth rises by $200 million after he says he won't sell DJT sharesFrom Antonio Klein IV

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