Stake Reduction in Trump Media

(Reuters) – One of the biggest shareholders in former U.S. President Donald Trump’s media company, United Atlantic Ventures, has nearly eliminated its stake after recent selling restrictions ended.

Managed by Trump Media co-founder Andrew Litinsky, who was featured on Trump’s reality TV show “The Apprentice,” United Atlantic reduced its 5.5% stake in Trump Media & Technology from over 7.5 million shares to just 100 shares, according to a filing late on Thursday.

United Atlantic was among the company’s top three shareholders. Republican presidential candidate Trump owns about 57% of Trump Media.

Shares of Trump Media, which operates the Truth Social app, have experienced volatility over the past five trading sessions since the end of insider trading restrictions related to the company’s March stock market debut.

On Thursday, shares dipped about 1% ahead of the filing, resulting in a stock market value of $2.8 billion.

Following its Wall Street debut, Trump Media’s value soared to nearly $10 billion, buoyed by retail traders betting on Trump’s chances for a second presidential term.

Since then, shares have steadily declined, with sharper drops occurring after President Joe Biden ended his reelection bid on July 21.

Trump, whose stake in Trump Media is valued at approximately $1.6 billion, stated on Sept. 13 that he does not plan to sell his shares, shifting focus to other major stakeholders who might cash out.

A representative for Litinsky did not immediately respond to a request for comment regarding the stock reduction.

Trump Media continues to face financial challenges, with revenue comparable to that of two Starbucks coffee shops. (This story has been corrected to fix hyperlinks in paragraphs 7, 8)