Former 'Apprentice' Stars' Firm Sells Majority of Trump Media Stake

A Florida-based company, United Atlantic Ventures (UAV), has significantly reduced its stake in Trump Media & Technology Group (TMTG), the parent company of Truth Social. This development comes approximately six months after TMTG's public debut through a merger.

UAV, owned by former contestants of "The Apprentice" Andrew Litinsky and Wesley Moss, has sold off nearly all of its 5.5% stake in TMTG. According to a recent regulatory filing, the firm's holdings have decreased from approximately 7.53 million shares to a mere 100 shares of common stock.

Truth Social, launched on February 21, 2022, was created in response to Donald Trump's ban from mainstream social media platforms. The platform aimed to provide an alternative space for conservative voices.

The sale follows a legal dispute between UAV and TMTG. TMTG's attorneys argued that UAV was not entitled to shares due to alleged mismanagement by Litinsky and Moss. However, in early September 2024, a federal judge in Delaware ruled in favor of UAV, granting them the right to sell their minority stake.

Delaware, known for its business-friendly corporate law, often sees such cases due to many companies being incorporated there. The court's summary judgment resolved the dispute without the need for a full trial.

Fort Lauderdale-based UAV played a role in facilitating the merger that took Trump Media public in March 2024. This process, known as a SPAC merger, has become increasingly popular for companies going public in recent years.

TMTG's stock performance has been volatile since its public debut. On its first day of trading, the share price reached a high of $79.38. However, as of September 26, 2024, it closed at $13.98 per share, representing a significant decrease.

This price fluctuation is not uncommon for newly public companies, especially those associated with high-profile figures. Stock prices can be influenced by various factors, including company performance, market conditions, and investor sentiment.

The substantial reduction in UAV's stake required disclosure through a regulatory filing with the Securities and Exchange Commission (SEC). This transparency is crucial for public companies to maintain investor trust and comply with federal regulations.

"You're fired!" became a catchphrase associated with Donald Trump during his tenure as host of "The Apprentice" from 2004 to 2015.

It's worth noting that "The Apprentice," which Trump hosted for over a decade, played a significant role in shaping his public image before his entry into politics. The reality TV show judged contestants' business skills, with Trump famously "firing" underperforming participants.

As TMTG navigates these ownership changes and stock price fluctuations, the company's future remains uncertain. The performance of Truth Social and its ability to compete with established social media platforms will likely play a crucial role in determining TMTG's long-term success and stock value.