Connect with us

Business

Digital World CEO urges Donald Trump to push shareholders to vote on merger delay

Published

on

106963736-1634813862952-gettyimages-1236019209-20090101211021-99-678900.jpeg


Homepage and app announcement of “Truth Social.”

Christoph Dernbach | picture alliance | Getty Images

Advertisement

Patrick Orlando, the CEO of the shell company set to take Trump Media and Technology Group public, on Friday urged Donald Trump and Trump Media CEO Devin Nunes to promote an upcoming vote to extend the merger deadline for the two companies.

@realDonaldTrump @DevinNunes let’s get the vote awareness up,” the Digital World Acquisition Corp. chief wrote in a Truth Social post that attached information about the shareholder vote.

Representatives for DWAC and TMTG did not immediately respond to a request for comment.

DWAC stockholders will vote on Oct. 10 to approve an extension to the merger deadline. A similar vote in September failed to garner the necessary 65% investor support. Orlando then injected $2.8 million from his company Arc Global Investments II into a trust for DWAC, helping it stave off liquidation for the moment. 

The former president has already hinted at killing the deal to go public and using his own money to finance the media venture. “Who knows? In any event, I don’t need financing, ‘I’m really rich!’ Private company anyone???” Trump wrote in a Truth Social post in early September.

Advertisement

DWAC is a special purpose acquistion company, or SPAC. These so-called blank check companies find businesses to take into public stock markets.

DWAC has until December to complete the merger with Trump Media and take the former president’s company, giving it access to billions of dollars. A successful shareholder vote would extend the deadline by about a year.

Another key deadline for the deal passed in September. Private investors who agreed to provide around $1 billion following the merger are no longer contractually obliged to provide that capital. DWAC reported last week that $138 million of the private investment has already been withdrawn.

These are far from the only issues facing DWAC and Trump Media. The two companies are the subject of a Justice Department probe into possible securities violations relating to conversations that occurred between the company representatives prior to the merger. The Securities and Exchange Commission is also investigating the deal.

Trump Media has said it was exploring legal proceedings against the SEC, saying the regulator has delayed the merger. 

Advertisement

The former president is also the subject of multiple investigations of his own. New York Attorney General Letitia James recently announced civil proceedings against him, the Trump Organization and his three eldest kids for fraud. He is also under investigation for his actions relating to the removal of sensitive documents from the White House, his alleged interference in the 2020 presidential election and for his role in the Jan. 6, 2021, Capitol insurrection. 

Trump launched Truth Social and Trump Media after he was banned from Twitter and other social media platforms after the riot, when hundreds of his supporters stormed Congress in a failed bid to prevent lawmakers from confirming Joe Biden’s win in the 2020 election.

DWAC closed more than 3% higher at $16.81, but is far off its 2022 high of about $97.



Source link

Advertisement

Business

Manhattan renters face sticker shock with average rent at $5,200

Published

on

By

107110542-1661769825025-gettyimages-1241895367-HOUSING_RENTALS.jpeg


An “Apartments For Rent” sign outside a building in the East Village neighborhood of New York, U.S.

Gabby Jones | Bloomberg | Getty Images

Advertisement
Manhattan rents rose 2% in November, dashing hopes that prices would cool and forcing many renters to give up their leases or downsize, according to brokers.

The median rent for a Manhattan apartment in November hit $4,033, up from $3,964 in October, according to a report from Douglas Elliman and Miller Samuel. The average rent, which is often skewed by luxury sales, fell slightly for the month but is still up 19% over last year, hitting $5,249 in November.

The increases continue to defy predictions that New York’s sky high rents would fall after the summer and give renters some relief after rents hit all-time records. While rents are easing in many parts of the country, New York’s rents remain stubbornly high and the number of unrented or empty apartments remains low.

“Rents are not coming down as quickly as many would hope,” said Jonathan Miller, CEO of Miller Samuel.

The rise in New York rents also adds pressure to overall inflation, since rents are a large component of inflation indexes and New York is the nation’s largest rental market.

Advertisement

Manhattan rents are so high that many tenants have started to balk at the prices — either moving out of the city or finding smaller, less expensive rentals. The number of new leases signed in November plunged 39% over October, marking the biggest decline since the start of the pandemic in 2020, according to Miller.

Brokers and real-estate experts say landlords over-reached when they started renewing the leases signed in 2020 and 2021, often demanding rent increases of 20% or more. With landlords typically requiring renters to have annual income of 40 times the monthly rent, the rising median rents have stretched many tenants to the breaking point.

“There is some gridlock,” said Bess Freedman, CEO of Brown Harris Stevens. “In 2021, rents took off like a rocket and now tenants are stuck. People aren’t going to sign new leases at these prices, they’re just too expensive. Landlords need to start getting more reasonable.”

Freedman said one of her friends faced a rent increase of 30% with a recent lease renewal. “She felt like she was being gouged,” Freedman said.

Vacancy rates remain low, putting little pressure on landlords to lower rents anytime soon. The vacancy rate in November was 2.4% — still below the historical norm in Manhattan of about 3%, according to Miller Samuel.

Advertisement

There are some early signs that landlords may start capitulating in 2023. The number of landlord concessions — which may include a month of free rent and other deals — rose to 16% in November from 13% in October. Real-estate experts say the big drop in new leases, if it continues, will eventually force landlords to meet renters at a lower price point.

Joshua Young, executive vice president and managing director of sales and leasing at Brown Harris Stevens, said landlords were overly bullish expecting rent increases of 20% or more, and many are now starting to lower prices or adding more concessions to keep their apartments filled.

“A lot of landlords are getting stuck with inventory so and they’re not getting their increases, so they’re reducing price,” he said.



Source link

Advertisement
Continue Reading

Business

Cramer’s lightning round: AGNC Investment is not a buy

Published

on

By

103507374-104044814.jpg


Paramount Global: “Too cheap to believe. … I don’t know where it bottoms, but it sure isn’t close to the top.”

Hasbro Inc: “I don’t like the earnings, and I think that Mattel‘s actually cheaper.”

Advertisement

Citigroup Inc: “The book value is so different from where the common stock is, the price. Something is very wrong there.”

Cramer's lightning round: AGNC Investment is not a buy

Jim Cramer’s Guide to Investing

Click here to download Jim Cramer’s Guide to Investing at no cost to help you build long-term wealth and invest smarter.



Source link

Continue Reading

Business

Jim Cramer says not to fear bearish economic talk from bank CEOs – there’s no ‘financial apocalypse’

Published

on

By

107059906-1652323139311-200222_IMG_7979.jpg


Jim Cramer says not to fear bearish economic talk from bank CEOs
CNBC’s Jim Cramer on Wednesday told investors that they should take gloomy economic commentary from bank executives with a grain of salt. 

“Don’t panic the next time you hear one of these bank CEOs say something terrifying — they don’t know the impact of their words,” he said, adding, “Sure, we’ve got plenty of problems, but they’re not financial apocalypse problems.”

The S&P 500 slipped for a fifth trading session on Wednesday as investors mulled the possibility of a recession.

Advertisement

Adding to investors’ worries, JPMorgan Chase CEO Jamie Dimon said on Tuesday that inflation is eating away at consumers’ pocketbooks and could create a recession. 

The chief executives of Bank of America and Wells Fargo also warned that the economy is slowing down as Americans cut back on spending.

“Memo to America’s bankers: Don’t try to frighten us. Don’t try to get us to sell everything,” Cramer said. “Don’t be Grinches telling us a hurricane could be coming.”

He urged the chief executives to remind investors of what’s going right in the Fed’s fight against inflation, and gave an example of what he believes one of the CEOs should have said: 

“There will come a day when the Fed will be done tightening, although that may be when the S&P 500 is a good bit lower. But I don’t know if I want to take the chance of possibly missing the [next] big rally. Hey, maybe buy small,” he said.

Advertisement

Disclaimer: Cramer’s Charitable Trust owns shares of Wells Fargo.

Watch Jim Cramer's message to U.S. bank leaders

Jim Cramer’s Guide to Investing

Click here to download Jim Cramer’s Guide to Investing at no cost to help you build long-term wealth and invest smarter.



Source link

Continue Reading

Trending