What's Going On With Trump Media & Technology Group Stock On Friday? (UPDATED)
Portfolio Pulse from Anusuya Lahiri
Trump Media & Technology Group Corp (NASDAQ:DJT) stock is volatile in premarket trading after announcing a deal to acquire critical assets for its content distribution network. The deal involves issuing 5.1 million shares and $17.5 million over three years, with a standby equity purchase agreement allowing up to $2.5 billion in shares issuance. The new network will stream via Truth Social and standalone apps, offering various content. DJT shares were down 0.64% to $30.90 premarket.

July 05, 2024 | 3:01 pm
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Trump Media & Technology Group Corp (NASDAQ:DJT) stock is experiencing volatility in premarket trading following the announcement of a significant acquisition deal. The company plans to issue 5.1 million shares and $17.5 million over three years to finance the deal. Additionally, a standby equity purchase agreement allows the issuance of up to $2.5 billion in shares over three years. The new content distribution network will stream via Truth Social and standalone apps.
The announcement of issuing 5.1 million shares and $17.5 million over three years, along with a standby equity purchase agreement for up to $2.5 billion in shares, indicates potential dilution of existing shares. This is likely causing the current volatility and downward pressure on the stock price.
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