Editor’s note: The article has been updated with details of the acquisition and rephrased for clarity.
Trump Media & Technology Group Corp (NASDAQ:DJT) stock was volatile during Friday’s trading session.
On Thursday, the company inked a deal to acquire critical assets for its planned content distribution network (CDN).
TMTG has acquired the non-exclusive perpetual licensing rights for new CDN technology from Perception Group, Inc.
This technology will initially power the streaming of linear TV through TMTG’s social media platform, Truth Social, and eventually, it will extend to stand-alone applications.
The deal also includes a potential future buyout of Perception Group, but with immediate restrictions on Perception’s operations in competitive markets in the U.S. for the next five years.
Trump Media proposes to finance the deal by issuing 5.1 million shares of its common stock and paying $17.5 million over three years.
Additionally, TMTG has secured a standby equity purchase agreement with Yorkville Advisors, allowing it to issue stock up to $2.5 billion at a discount.
This agreement gives TMTG flexible access to capital, which it plans to use to acquire more assets and technologies aimed at supporting free expression and reducing Big Tech’s influence on digital communication.
Also Read: Trump Media Faces Stock Dilution Concerns After Raising $105 Million Through Warrants
The company emphasizes that this move is part of its broader strategy to enhance its offerings and expand its user base. It aims to provide a reliable platform for content at risk of cancellation by mainstream tech companies, such as news shows, religious channels, and family-friendly content that has been canceled or is at risk of cancellation.
Meanwhile, Trump Media’s majority stockholder, former President Donald Trump, has challenged President Joe Biden to a debate with no moderators and fewer rules to prove Biden’s “competence or lack thereof.”
He criticized the structured format of their previous debate hosted by CNN, which drew 47.9 million viewers.
Trump said this format would give Biden a platform to explain his policies, according to the New York Times report.
He added that this debate would test Biden’s competence under pressure.
Following the first debate on June 27, several key Democratic figures and editorial boards have called for Biden to withdraw from seeking reelection.
Price Action: DJT shares were trading lower by 5.27% to $29.46 at the last check on Friday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo via Shutterstock
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This article What’s Going On With Trump Media & Technology Group Stock On Friday? (UPDATED) originally appeared on Benzinga.com
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