(Bloomberg) — Donald Trump’s business empire was supposed to be in peril like never before on Monday. Instead, it turned into the single-greatest day on record for the former president’s wealth.
Most Read from Bloomberg
Facing a deadline to post a bond of more than $500 million in a New York fraud lawsuit, a state appeals court tossed him a lifeline, slashing the amount he’d have to post to $175 million — an amount he says he’ll cover. Around the same time, his social media company Trump Media & Technology Group wrapped up a 29-month-long merger process, meaning shares worth billions of dollars on paper are now officially Trump’s.
All told, his net worth increased by more than $4 billion. That means for the first time ever, Trump joined the ranks of the world’s wealthiest 500 people on the Bloomberg Billionaires Index, with a fortune of $6.5 billion.
“We have a great company and are incredibly honored,” Eric Trump, executive vice president of the Trump Organization, said in a statement.
Trump, 77, has been rich all his life. But his fortune, which previously peaked at $3.1 billion, has largely consisted of real estate properties, the value of which he and his company were found to have inflated by billions of dollars a year for more than a decade to get better terms on loans.
His illiquid wealth created a potential financial crisis ahead of Monday’s deadline to either pay his $454 million verdict or post a bond for 120% of the judgment while he appeals it. New York Attorney General Letitia James signaled she was ready to seize assets if Trump didn’t comply.
Read more: Trump Bond Cut By 68% to $175 Million as He Appeals NY Fine
Trump vowed to quickly post cash or a bond to cover the lowered amount. As it stands now, he can’t cash in on his windfall from Trump Media’s merger with Digital World Acquisition Corp. because his shares are locked up for roughly six months.
DWAC shares closed at $49.95 Monday, up about 185% since the start of the year. That values Trump’s 58% stake in the company at $3.9 billion. (It’s expected to start trading under the ticker DJT on Tuesday.)
The completion of the merger, which overcame hurdles including an investigation and settlement with the US Securities and Exchange Commission and last-minute lawsuits from executives and investors, means the shares are now included in Bloomberg’s calculation of Trump’s net worth. Previously, his stake had been valued at just $22.5 million, based on his most recent financial disclosure form.
His revised fortune makes Trump, who is campaigning to return to the White House, worth on paper about the same as Joe Ricketts, Gordon Getty and Tony James, according to the Bloomberg wealth index, which has been calculating Trump’s net worth since 2015.
The figure, which has consistently been below Trump’s own estimates, is based on ethics disclosures required for presidential candidates, public filings tied to key real estate holdings and staff reporting.
(Updates with details on fraud lawsuit in fifth paragraph, methodology in last paragraph.)
Most Read from Bloomberg Businessweek
©2024 Bloomberg L.P.
Source: finance.yahoo.com