Wall Street financier and prominent Republican donor, Jeff Yass, has reportedly been identified as a significant shareholder in the company that recently merged with former President Donald Trump’s social media company.
What Happened: Yass’s trading firm, Susquehanna International Group, was disclosed in a December regulatory filing to hold about 2% of Digital World Acquisition Corp. (NASDAQ:DWAC), which recently merged with Trump Media & Technology Group, reported The New York Times. This stake, consisting of approximately 605,000 shares, was valued at around $22 million based on Digital World’s last closing share price.
Following the merger, if Susquehanna maintained its stake, it would become one of the larger institutional shareholders of Trump Media. Digital World’s shares have seen a surge of about 140% this year as the merger with the parent company of Truth Social, Trump’s social media platform, approached.
Susquehanna, however, clarified in a statement that it is a market maker and has “zero economic interest in Trump Media.” The firm’s long position is offset by short positions of the same size. The company refrained from commenting on whether it still owned a stake in Digital World or on the relationship between Mr. Yass and Mr. Trump.
Why It Matters: This development comes at a time when Trump is facing significant financial challenges. Trump is considering liquidating his stock in Digital World Acquisition to pay more than $450 million in legal bills. Furthermore, Trump has suggested a potential ‘fire sale’ of his properties to cover a $464 million bond due in his ongoing New York civil fraud case.
These financial challenges have raised concerns. Rep. Alexandria Ocasio-Cortez (D-N.Y.) has voiced concerns over the potential risks if Trump’s assets are not seized. The New York representative singled out “interesting transactions” with Truth Social in her comments.
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