Trump Media & Technology Group Corp’s DJT stock is experiencing volatility in premarket trading on Friday after the company announced a deal to acquire critical assets for its content distribution network. The company plans to finance the deal by issuing 5.1 million shares and $17.5 million over three years.
Trump Media has secured a standby equity purchase agreement with Yorkville Advisors, allowing for the issuance of up to $2.5 billion in shares to support its growth strategy. The new network will stream content through the Truth Social platform and standalone apps, with licensing rights from Perception Group, Inc., for CDN technology, subject to restrictions on Perception’s ability to compete with Trump Media in the U.S market. There is also an option for Trump Media to acquire Perception outright in the future.
The streaming service will offer news shows, religious channels, and family-friendly content. Former President Donald Trump, the majority stockholder of Trump Media, has challenged President Joe Biden to a debate with no moderators and fewer rules to test Biden’s competence under pressure. Trump believes a less constricted format would allow Biden to explain his policies more effectively. Following the first debate, there have been calls for Biden to withdraw from seeking reelection.
Despite the volatility in premarket trading, DJT shares were trading slightly lower at $30.90 at the last check on Friday. This content was produced with AI tools and reviewed by Benzinga editors.
