A win by former President Donald Trump in the 2024 presidential election could raise concerns about conflicts of interest related to his ownership of a media company.
What Happened: Trump is the co-founder of Trump Media & Technology Group DJT, a media company that owns the Truth Social platform and other media assets.
While investors are worried that Trump might sell his shares after a lockup expiration, ethics watchdogs are concerned about who could be buying the shares ahead of the 2024 election or if Trump returns to the White House.
According to a report from Politico, purchasers of the stock could include foreign actors or people seeking corporate interests.
"It's a huge potential conflict of interest," Project on Government Oversight Director of Government Affairs Dylan Hedtler-Gaudette said, as reported by Politico.
Hedtler-Gaudette said ethics concerns over businesses connected to Trump are not new, but having a public company and being president could amplify the concerns.
Trump's media company has set up rules that he will still maintain control of the company if he goes to prison or becomes president. Trump will also keep control if he sells his stock, as long as he keeps his special shares that come with voter control.
Ownership of a media company could have ethics watchdogs on alert if Trump does return to the White House.
"This is a potentially dangerous situation," former White House ethics lawyer Richard Painter told Politico. "The government shouldn't be controlling the press (and) that's where we are in social media."
Trump recently said he created Trump Media after being banned from other social media platforms. The venture arose after he began using traditional press releases to engage with his supporters, a strategy that quickly proved successful.
One potential concern is if Trump opts to bypass traditional media press releases or mainstream outlets, choosing instead to communicate exclusively through Truth Social or other companies he owns.
Did You Know?
- Congress Is Making Huge Investments. Get Tips On What They Bought And Sold Ahead Of The 2024 Election With Our Easy-to-Use Tool
Why It's Important: While most presidents haven't owned stocks while in office or put their investments into blind trusts to avoid conflicts of interest, it doesn't appear Trump will be changing his tune about DJT shares anytime soon.
Trump's ownership of hotels were previously involved in ethics concerns due to how government officials were billed for their use while Trump was in office.
According to the report, those seeking favors from Trump or hoping for him to make decisions or publicly support certain positions may perceive increased chances of success if they purchase shares in his company. Members of Congress who own DJT shares could also see their prominence rise if Trump returns to the White House.
With Trump's continued ownership of Trump Media & Technology Group, there remains multiple ethics concerns at play if he returns to the White House. The president owning a media company that could profit from his exclusive access, coupled with individuals publicly buying shares in Trump’s company to demonstrate loyalty, could emerge as significant issues moving forward.
DJT Price Action: Trump Media & Technology shares are down 6.7% to $13.70 on Friday. The stock hit new post-SPAC merger lows of $13.50 earlier in the day. The stock is down 19% year-to-date in 2024.
Read Next:
Photo: Shutterstock
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
