Trump Media agrees $6bn merger with fusion firm
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Trump Media & Technology Group, the company behind Truth Social, announced an all-stock merger agreement valued at more than $6 billion with fusion energy developer TAE Technologies. The tie-up is framed by the companies as a way to pair Trump Media’s capital resources with TAE’s effort to commercialize fusion—an experimental energy technology often described as potentially abundant and low-pollution. For investors, the near-term reality is that TAE does not expect a first power plant to come online until 2031, meaning the combined company’s fusion ambitions are still years away from meaningful operating revenue.

Trump Media & Technology Group is the parent company of Truth Social, a social media platform that has struggled to gain widespread traction.

Highlights:

  • Stock reaction: Trump Media shares jumped sharply after the announcement (reported as up 33% by CNBC and over 40% by Fortune), after having fallen about 70% year-to-date before the deal.
  • Ownership split: The companies said shareholders of Trump Media and TAE would each own about 50% of the combined entity once the transaction closes.
  • AI power pitch: TAE and Trump Media described the strategy as a bet on rising electricity demand tied to the AI boom, including plans to pursue a “utility-scale” fusion plant aimed at supplying power for AI computing.
  • Construction plan: The merged company said it expects to pick a site and begin construction next year on what it calls the world’s first utility-scale fusion power plant.
  • Deal timing: Quartz reported the merger is expected to close in the middle of next year.
We’ve got capability and technology to really scale this, but the last piece of the puzzle was the capital - Michl Binderbauer

Perspectives:

  • TAE Technologies leadership: TAE says the combination supplies the capital it needs to scale engineering and target a first U.S. fusion plant coming online by 2031, with Trump Media’s balance sheet positioned as the funding backstop. (CNBC)
  • Trump Media & Technology Group: Trump Media is presenting the deal as a leap beyond social media into a broader mix that includes energy alongside its other initiatives, including cryptocurrency activity referenced in coverage. (The New York Times)
  • Public Citizen: Robert Weissman, co-president of Public Citizen, criticized the transaction as an unethical cash grab involving the president and his family. (Fortune)
  • Political accountability concerns: The Washington Post reported that the deal has raised questions about potential conflicts of interest connected to bringing fusion energy to market. (The Washington Post)

Sources:

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