Trump Media's merger with nuclear startup TAE valued at $6 billion
Kyiv • UNN
Trump's company announced a merger with thermonuclear technology developer TAE Technologies. The $6 billion deal aims to meet the energy needs of data centers serving artificial intelligence.
Donald Trump's company, Trump Media & Technology Group, has announced a strategic merger with fusion technology developer TAE Technologies. The $6 billion deal aims to meet the energy needs of data centers serving artificial intelligence. This move is seen as an attempt by the president to expand his business empire by leveraging the demand for "clean" energy. This is stated in a Reuters article, writes UNN.
Details
The merger came just days after energy sector leaders called for increased federal funding for the industry. Analysts point out that the Trump family is increasingly integrating their business interests – from cryptocurrencies to nuclear energy – into the political agenda, potentially increasing the value of their investments through government policy changes.
Trump Media gets a compelling new growth story tied to the AI power crisis and data center (hyperscaler) electricity demand, while TAE gets a fast track to public trading via a stock merger worth over $6 billion
Market reaction and structure of the new company
News of the deal triggered a 35% surge in Trump Media shares, which came as a surprise to retail investors after a prolonged decline in the company's assets. Despite market optimism, the Truth Social platform remains unprofitable, recording losses of $54.8 million in just one quarter.
Key details of the deal:
- The new company will combine Truth Social, TAE Power Solutions, and TAE Life Sciences.
- Shareholders of both parties will own 50% of the combined entity; Trump's stake will decrease from 40% to approximately 20%.
- The merger process is expected to be fully completed by mid-2026.
- Despite billions in investment, a commercially viable fusion reactor has not yet been created anywhere in the world.
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Retail investors, who had previously expressed disappointment with the falling stock value, reacted positively to the news. In particular, Chad Nedohin, who leads a large group of investors on Truth Social, called the move a "brilliant move" against the backdrop of a year-long stagnation in the company's shares.
I can't sit here and just be happy about a stock that until today has only done stupid things. But today was amazing, I think it's a brilliant move
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