In a recent discussion on MSNBC with the network’s Katie Phang, lawyer Renee Zaytsev cast serious doubt on the possibility of the latest developments at Donald Trump’s social media company helping him at all amid the fallout from a state civil case that successfully alleged business fraud.
Trump was facing a demand for a bond covering hundreds of millions of dollars in penalties from that case to stave off collections amid appeals, and the state authorities behind the case were set to become able to start pursuing collections on Monday… with no escape clear for the former president as of Sunday, less than 24 hours before that point. Past court filings from Trump’s own side said that some 30 bond companies already rejected Trump, though there was still also the possibility of court intervention allowing different requirements on Trump.
As for Truth Social, which is Trump’s social media platform, a merger of its parent company and a publicly traded company was recently approved, opening up new sources of funding for the Trump operation after an extremely extensive delay amid federal investigations into the relationship between the formerly separate firms. Trump’s holdings looked set to be worth upwards of $3 billion… but it wasn’t solving his financial problems in the New York case.
Zaytsev explained initially that there’s an expected hold for six months on Trump transforming his holdings into cash that could actually benefit the ex-president, though there’s another problem.
“This is a meme stock. I mean it’s really another AMC situation. The fundamentals of this company are completely unmoored from the stock price. The company has $3 million of revenues, it’s forecasting losses into the foreseeable future, and somehow it’s going to have a market cap in the billions of dollars?” Zaytsev asked. She expressed doubts about prospective partners in a bond agreement taking seriously the claimed scope of Trump’s financial holdings in the company.
Watch her below:
