Trump Media sees surge in short selling after merger with fusion company
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Summary
- Short-selling activity surged after Trump Media and TAE Technologies announced a roughly 9 trillion won merger.
- Trump Media’s short interest rose about 30% after the merger announcement, with short positions accounting for about 10% of the free float.
- The FT said the stock jumped right after the deal announcement but short selling quickly surged, as skepticism over the merger grows, and added that Trump Media has not posted a profit for three years.
Three years of losses…skepticism over merger grows
Short-selling activity betting on a decline in the share price has surged after Trump Media & Technology Group (Trump Media) announced a merger with fusion technology developer TAE Technologies.
According to the Financial Times (FT) on the 7th (local time), Trump Media’s short interest rose about 30% after it agreed on the 18th of last month to a roughly 9 trillion won merger with TAE Technologies and said it would enter the fusion energy business. As of the 2nd, short positions accounted for about 10% of the company’s free float.
“The stock jumped immediately after the deal announcement, but short selling quickly surged,” the FT said, adding that “skepticism in the market about the merger is growing.” It also noted that “Trump Media has not posted a profit over the past three years.” Trump Media is a media company led by the family of U.S. President Donald Trump.
By Myunghyun Han wise@hankyung.com
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