Trump Sons Serve as Advisors to 'New America' SPAC
Receive 5 Million Shares as Compensation
"Stake Could Be Worth Millions of Dollars After IPO"
Donald Trump Jr. and Eric Trump are attending a commemorative event held in Normandy, France, in June 2019. Photo by Reuters Yonhap News
Donald Trump Jr., the eldest son of U.S. President Donald Trump, and his younger brother Eric Trump, are reportedly participating as advisors and receiving company shares in a business that invests in companies expected to benefit from U.S. manufacturing revitalization policies.
The Wall Street Journal (WSJ) reported on August 4 (local time), citing the initial public offering (IPO) plan submitted by the special purpose acquisition company (SPAC) "New America" to the New York Stock Exchange (NYSE). A SPAC is a special company established to acquire unlisted companies and list them on the stock market via a shortcut, bypassing the formal IPO process.
According to New America's $300 million IPO plan, the two sons of President Trump have been listed as advisors to the company and have also joined its advisory board. In return for serving as advisors, they received company shares. Donald Trump Jr. received 2 million shares, while Eric Trump received 3 million shares. WSJ reported that these shares can be converted into common stock if New America merges with a target company, and their value could reach several million dollars.
The main targets for mergers and acquisitions (M&A) are expected to be in the manufacturing sector. The company introduced that it is seeking to acquire companies that play a significant role in the revitalization of domestic manufacturing, the expansion of the innovation ecosystem, and the strengthening of key supply chains. However, the Financial Times (FT) of the UK, citing a source familiar with the matter, reported that a virtual asset company could also be a target. The source added, "The target company may be related to virtual assets, but it is more likely to be a data center, a drone company, or a robust offline-based 'strong American company.'"
This approach has sparked controversy over conflicts of interest. The Trump family has long leveraged President Trump's influence to pursue various business ventures. These ventures span a wide range, including virtual assets, social networking services (SNS), and telecommunications.
President Trump has pledged to grow the virtual asset industry, and the Trump family is a major shareholder in the virtual asset company World Liberty Financial (WLF). The Trump brothers also hold significant stakes in a Bitcoin mining company. In March of this year, Eric Trump co-founded the Bitcoin mining company American Bitcoin. President Trump also launched a meme coin named after himself this year. There is also a "Melania Coin" named after First Lady Melania Trump.
Donald Trump Jr. is a venture capital (VC) partner aiming to invest in businesses that promote conservative values, and the Trump family's family business is pursuing a telecommunications venture under its own brand, "Trump Mobile." The parent company of President Trump's social networking service (SNS) Truth Social, "Trump Media & Technology Group," went public last year through a SPAC, bringing President Trump billions of dollars in wealth.
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