Trump Media discusses potential Truth Social spin-off transaction

Trump Media & Technology Group Corp. (NASDAQ: DJT) announced it is in discussions with TAE Technologies Inc. and Texas Ventures Acquisition III Corp. (NASDAQ: TVA) regarding a potential spin-off of Truth Social and other businesses into a new public company.

The proposed transaction would occur following the previously announced merger between Trump Media and TAE Technologies. Under the contemplated structure, shares of the new spin-off company would be distributed to Trump Media shareholders of record prior to the TAE merger closing, after which the spin-off entity would merge with Texas Ventures III.

TAE's businesses and certain Trump Media assets would remain with the current public company following the spin-off completion. The companies stated the transaction aims to create shareholder value through separate pure-play entities with distinct strategies.

The companies emphasized that no definitive agreement has been reached and discussions remain ongoing. They cautioned that no assurance exists that any transaction will result from the discussions, including terms or timing of potential deals.

Any definitive agreements would require approval from the respective companies' boards, regulatory authorities, shareholders, and other customary closing conditions.

Trump Media operates Truth Social, a social media platform, along with Truth+ streaming service and Truth.Fi financial services. TAE Technologies develops fusion power technology and operates subsidiaries focused on energy storage and cancer treatment technologies. Texas Ventures III is a special purpose acquisition company seeking business combination opportunities.

The announcement was made through a press release statement from the three companies.

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