President Trump would continue to hold a significant interest in Trump Media after its proposed merger with a fusion energy company, according to a regulatory filing on Wednesday for a deal that would radically transform the parent company of Mr. Trump’s Truth Social platform. Mr. Trump would own a little over 20 percent of the newly merged company’s stock, according to the filing with the Securities and Exchange Commission. His eldest son, Donald Jr., who oversees a trust that holds the president’s shares, would remain on the board of the company after the merger, the filing said.
The lengthy filing lays out the terms of the deal between Trump Media & Technology Group and TAE Technologies, which was formally announced in December. The filing is a necessary step toward getting securities regulators to sign off on the merger of the two money-losing businesses. TAE Technologies, which has been working to develop nuclear fusion technology for more than two decades, will become a subsidiary of Trump Media if the deal closes, as expected, this year, the filing said.
The companies envision keeping the TAE Technologies management team largely intact. Kevin Mc Gurn, the interim chief executive of Trump Media, and Michl Binderbauer, TAE Technologies’ chief executive, are expected to serve as co-chief executives of the merged company. “We believe commercial-scale fusion power will be the technology that secures America’s energy independence and delivers a decisive edge in the global race for A.I. dominance,” Mr. Mc Gurn said in a statement.
The filing said TAE Technologies had incurred losses since its inception and had an accumulated deficit of $1.8 billion. Without additional funding for research and future development, the filing said, there is “substantial doubt about the company’s ability to continue as a going concern.” Trump Media shares declined slightly to $9.07.
Source: New York Times Business · Summarized by HeadlinesBriefing