Trump’s Costly Decision Drops Him from Forbes’ Top 500 Richest List
JOSE LUIS MAGANA/ASSOCIATED PRESS
A decision made by Donald Trump in March has become financially burdensome, causing the former president to slip out of Forbes‘ rankings of the top 500 wealthiest people, according to a recent report. Trump’s social media venture, Truth Social, initially boosted his net worth significantly. However, a “lockup” agreement has prevented Trump from cashing in on his shares, which is now costing him dearly, as reported by The Washington Post on Saturday.
The report noted that Trump’s shares in the parent company of Truth Social have plummeted in value just weeks before he is allowed to sell them. This decline has, at least temporarily, erased billions of dollars from his paper net worth. Despite being the largest shareholder with 114 million shares, Trump has been unable to sell due to the lockup agreement that began when the company went public through a merger in March. The agreement prevents him from selling until later this month.
The company’s stock price has been volatile since its public debut, with market analysts suggesting that its value is closely tied to Trump’s potential return to the White House. As the stock price continues to fall, Trump’s personal wealth is taking a significant hit.
“Newly public companies often implement lockup agreements to demonstrate commitment from top executives and investors,” The Washington Post explained. “But Trump’s lockup has proven unusually costly, at least on paper, due to the size of his stake and the significant drop in the company’s value.”
Trump’s March market debut propelled him into Forbes‘ list of the world’s 500 richest people. However, by Tuesday, his rank had slipped to No. 851, reflecting the steep drop in his wealth. This financial setback highlights the risks associated with the unpredictable value of Truth Social and its reliance on Trump’s political future.
