Editor’s note: The article has been updated with details of the acquisition and rephrased for clarity.
Trump Corp. media and technology group (NASDAQ:DJT) shares were volatile during the trading session on Friday.
On Thursday, the company signed an agreement to acquire critical assets for its planned content delivery network (CDN).
TMTG has acquired non-exclusive perpetual licensing rights to TMTG’s new CDN technology. Perception Group, Inc..
This technology will initially power linear TV streaming via TMTG’s social media platform, Truth Social, and will eventually extend to standalone apps.
The agreement also includes a possible future purchase of Perception Group, but with immediate restrictions on Perception’s operations in competitive U.S. markets for the next five years.
Trump Media is proposing to finance the deal by issuing 5.1 million shares of its common stock and paying $17.5 million over three years.
In addition, TMTG has secured a standby share purchase agreement with Yorkville Advisorswhich will allow it to issue shares worth up to $2.5 billion at a discount.
The deal gives TMTG flexible access to capital, which it plans to use to acquire more assets and technologies aimed at supporting free expression and reducing the influence of Big Tech in digital communication.
Read also: Trump’s media outlets face share dilution concerns after raising $105 million through warrants
The company stresses that this move is part of its broader strategy to improve its offering and expand its user base. Its goal is to provide a trusted platform for content that is at risk of being canceled by major tech companies, such as news programs, religious channels and family-friendly content that has been canceled or is at risk of being canceled.
Meanwhile, Trump Media’s majority shareholder, former President Donald Trump, challenged President Joe Biden to an unmoderated, rules-free debate to demonstrate Biden’s “competence or lack thereof.”
He criticized the structured format of his previous debate hosted by CNN, which attracted 47.9 million viewers.
Trump said the format would give Biden a platform to explain his policies, the New York Times reported.
He added that this debate will test Biden’s competence under pressure.
Following the first debate on June 27, several key Democratic figures and editorial boards called for Biden to withdraw from his reelection bid.
Price Action: DJT shares were trading down 5.27% at $29.46 at last check on Friday.
Disclaimer: This content was partially produced with the help of artificial intelligence tools and was reviewed and published by Benzinga editors.
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This article What’s Happening With Trump Media & Technology Group Stock On Friday? (UPDATED) originally appeared on Benzinga.com
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