March 22 (Reuters) - Former U.S. President Donald Trump
came a step closer on Friday to reaping a major windfall from
his social media firm after investors in a blank-check
acquisition company approved a tie-up currently worth about $6
billion.
The deal values Trump's majority stake in the company that
holds his app Truth Social at about $3.6 billion. The windfall
could prove vital as Trump grapples with the financial fallout
of a string of legal cases against him, including a $454 million
judgment in a civil fraud case in New York.
Shareholders of Digital World Acquisition Corp ( DWAC )
, the SPAC that plans to list Trump Media & Technology
Group on the stock market through a merger, voted in favor of
the deal on Friday.
While the next step would be for the deal to be completed
next week, its future is fraught with uncertainty. Digital
World's former CEO Patrick Orlando and former Trump business
associates Andy Litinsky and Wes Moss have separately sued to
block the merger, arguing they are entitled to more shares for
their previous work on the deal.
It's unclear how and when these cases will be resolved. Even
if the deal gets completed next week, Trump will not be allowed
to sell any of his shares in the combined company for six months
or borrow against them, based on terms he previously agreed.