Trump Media & Technology Group Corp (NASDAQ: DJT) experienced volatile trading on Friday following the announcement of an acquisition deal. The company acquired licensing rights for new CDN technology from Perception Group, Inc., which will power the streaming of linear TV through Truth Social, TMTG’s social media platform. The deal also includes a potential future buyout of Perception Group, with restrictions on competitive operations for the next five years.
To finance the deal, TMTG will issue 5.1 million shares of common stock and pay $17.5 million over three years. The company also secured a standby equity purchase agreement with Yorkville Advisors to issue stock up to $2.5 billion at a discount, providing access to capital for future acquisitions.
Trump Media aims to provide a platform for content at risk of cancellation by mainstream tech companies, such as news shows and family-friendly content. Additionally, former President Donald Trump challenged President Joe Biden to a debate with fewer rules and no moderators to test Biden’s competence under pressure.
DJT shares were trading lower by 5.27% at $29.46 at the last check on Friday. This move is part of TMTG’s strategy to enhance its offerings and expand its user base while reducing Big Tech’s influence on digital communication. The company continues to focus on providing a reliable platform for free expression and content that is at risk of cancellation.
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