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The Trump Arraignment Media Circus Is Underway

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DAVE SANDERS/Redux. 
As satellite trucks clog Lower Manhattan and the press corps parachute in, veteran court reporters talk to Vanity Fair about coverage concerns, from nabbing a seat to accessing documents, and the historic nature of the proceedings. “It’s the biggest case in my career,” says one.

April 3, 2023

On a brisk but sunny Monday morning, Lower Manhattan was swarmed with satellite trucks and news crews. In front of the New York State Supreme Court, two TV reporters were doing news hits, with one noting “a very tight security apparatus” and “huge media contingent” anticipating Donald Trump’s arraignment on Tuesday. But the real media circus was situated some 300 feet away, where, across from Manhattan DA Alvin Bragg’s office, a mass of white tarps lined the street. The names of various outlets—AP, ABC, NY1, Bloomberg, Fox Business, USA Today, Getty—were scrawled on pieces of duct tape adhered to the concrete in front of their respective canopies. I overheard one cameraman explaining to an evidently confused tourist what they were all doing there as he sipped his coffee, and spotted about a dozen cameras inside Collect Pond Park, where a reporter was standing on a bench doing a TV hit. On the other side of the square was a line of parked satellite trucks. “They said 2:15 tomorrow,” I heard an NYPD officer tell his colleague outside 80 Centre Street. “We’re gonna be removing a lot of vehicles too,” she replied.

The city is bracing for the historic arraignment of the former president, whom a Manhattan grand jury voted to indict last week for his role in the 2016 hush-money payout to porn star Stephanie Clifford (aka Stormy Daniels). TV networks were glued to Trump’s motorcade ride to a Palm Beach airport Monday, en route to New York, and Tuesday’s courtroom appearance is sure to dominate cable news. For the reporters who cover the criminal courts, and are accustomed to high-profile proceedings—such as Harvey Weinstein’s 2020 rape trial or the 2011 sexual assault case against former International Monetary Fund chief Dominique Strauss-Kahn, which was later dismissed—the circus surrounding Trump is reaching a whole other level. “I think this is going to dwarf those cases,” said Laura Italiano, who worked at all three New York City tabloids before landing at Insider, where she’s been focusing on Trump’s legal exposure in New York state court. “I’ve been at this for 30 years, and it’s the biggest case in my career.”

The media frenzy had been building for weeks but the indictment came somewhat out of left field, because, as reporters were told a day earlier by sources, the grand jury was set to break for a previously scheduled hiatus, which would push any indictment of Trump until at least the end of April. “Everything was quiet. Some reporters were planning vacations,” said Patricia Hurtado, who’s been covering courts for Bloomberg for 18 years. “As a veteran court reporter—and I’ve covered federal and state courts for decades—this has been the strangest thing, because it’s been a whiplash,” she told me of the inquiry. “It’s been maddening.” Right before the indictment news broke, Italiano told me she’d just filed a story with a headline along the lines of “This Trump Indictment Long Break Is Not a Sure Thing.”

Molly Crane-Newman, who covers the Manhattan federal and state courts for the New York Daily News, was at her desk, located inside the courthouse, when she heard Trump had been indicted. “I shrieked,” she recalled. “I cover all manner of cases in the courts—the high-profile ones, but also the hyperlocal ones,” she said, noting that reporting on indictments being filed is “routine” for her. “The process is going to be the same as it would be for any defendant, but obviously most of the defendants aren’t accompanied by Secret Service when they surrender.”

When I caught up with the three reporters after the indictment news broke, they were all focused on making sure they’d be able to do their jobs with the rest of the press corps parachuting in. There are a limited number of seats in the courtroom, and Italiano said Insider’s lawyers were “ready preemptively, in case there’s any kind of objectionable limitation on access,” like a pool situation where there’s one camera and one print reporter—“the kind of nightmare that keeps me awake,” as she put it. Crane-Newman pointed to past high-profile trials like Weinstein’s, or El Chapo’s in federal court in Brooklyn. “In those instances, reporters who don’t have in-house credentials have been required to start lining up outside the courthouse the night before,” she said, noting that she was among them for El Chapo, arriving at 11 p.m. one night before. Even that wasn’t enough, she noted: “I was the first reporter in overflow.”

For Weinstein’s trial, Hurtado said she got up at 4:30 a.m.—by which time the line was already around the block—to make sure she was there in time. In preparation for Tuesday, Hurtado joked about asking a lawyer she knows, who lives in an apartment building next door to the courthouse, whether she could crash on their floor in a sleeping bag. “It’s a big slog,” she said. Press access to documents may also be a challenge, as it has been with previous high-profile state court cases, said Hurtado, because while the federal court system is electronic, the state court still operates largely on paper. During Weinstein’s trial, reporters were taking photos of the filing with their phones, Hurtado said. “The courthouse system is kind of trapped in 1923,” she said.

The chaos might not be limited to the press swarm, as a threat of potential unrest has officers on high alert. Last month, when Trump predicted he would be “arrested on Tuesday,” the former president called on supporters to “protest” and “take our nation back.” At least one of his sycophants in Congress has heeded the call, as Representative Marjorie Taylor Greene tweeted that she’s coming to New York on Tuesday to “protest this unprecedented abuse of our justice system and election interference,” and will be headlining a rally planned by the New York Young Republican Club at a nearby park.

This post has been updated.

 

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Trump could cash out his DJT stock within weeks. Here’s what happens if he sells

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Former President Donald Trump is on the brink of a significant financial decision that could have far-reaching implications for both his personal wealth and the future of his fledgling social media company, Trump Media & Technology Group (TMTG). As the lockup period on his shares in TMTG, which owns Truth Social, nears its end, Trump could soon be free to sell his substantial stake in the company. However, the potential payday, which makes up a large portion of his net worth, comes with considerable risks for Trump and his supporters.

Trump’s stake in TMTG comprises nearly 59% of the company, amounting to 114,750,000 shares. As of now, this holding is valued at approximately $2.6 billion. These shares are currently under a lockup agreement, a common feature of initial public offerings (IPOs), designed to prevent company insiders from immediately selling their shares and potentially destabilizing the stock. The lockup, which began after TMTG’s merger with a special purpose acquisition company (SPAC), is set to expire on September 25, though it could end earlier if certain conditions are met.

Should Trump decide to sell his shares after the lockup expires, the market could respond in unpredictable ways. The sale of a substantial number of shares by a major stakeholder like Trump could flood the market, potentially driving down the stock price. Daniel Bradley, a finance professor at the University of South Florida, suggests that the market might react negatively to such a large sale, particularly if there aren’t enough buyers to absorb the supply. This could lead to a sharp decline in the stock’s value, impacting both Trump’s personal wealth and the company’s market standing.

Moreover, Trump’s involvement in Truth Social has been a key driver of investor interest. The platform, marketed as a free speech alternative to mainstream social media, has attracted a loyal user base largely due to Trump’s presence. If Trump were to sell his stake, it might signal a lack of confidence in the company, potentially shaking investor confidence and further depressing the stock price.

Trump’s decision is also influenced by his ongoing legal battles, which have already cost him over $100 million in legal fees. Selling his shares could provide a significant financial boost, helping him cover these mounting expenses. However, this move could also have political ramifications, especially as he continues his bid for the Republican nomination in the 2024 presidential race.

Trump Media’s success is closely tied to Trump’s political fortunes. The company’s stock has shown volatility in response to developments in the presidential race, with Trump’s chances of winning having a direct impact on the stock’s value. If Trump sells his stake, it could be interpreted as a lack of confidence in his own political future, potentially undermining both his campaign and the company’s prospects.

Truth Social, the flagship product of TMTG, has faced challenges in generating traffic and advertising revenue, especially compared to established social media giants like X (formerly Twitter) and Facebook. Despite this, the company’s valuation has remained high, fueled by investor speculation on Trump’s political future. If Trump remains in the race and manages to secure the presidency, the value of his shares could increase. Conversely, any missteps on the campaign trail could have the opposite effect, further destabilizing the stock.

As the lockup period comes to an end, Trump faces a critical decision that could shape the future of both his personal finances and Truth Social. Whether he chooses to hold onto his shares or cash out, the outcome will likely have significant consequences for the company, its investors, and Trump’s political aspirations.

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Arizona man accused of social media threats to Trump is arrested

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Cochise County, AZ — Law enforcement officials in Arizona have apprehended Ronald Lee Syvrud, a 66-year-old resident of Cochise County, after a manhunt was launched following alleged death threats he made against former President Donald Trump. The threats reportedly surfaced in social media posts over the past two weeks, as Trump visited the US-Mexico border in Cochise County on Thursday.

Syvrud, who hails from Benson, Arizona, located about 50 miles southeast of Tucson, was captured by the Cochise County Sheriff’s Office on Thursday afternoon. The Sheriff’s Office confirmed his arrest, stating, “This subject has been taken into custody without incident.”

In addition to the alleged threats against Trump, Syvrud is wanted for multiple offences, including failure to register as a sex offender. He also faces several warrants in both Wisconsin and Arizona, including charges for driving under the influence and a felony hit-and-run.

The timing of the arrest coincided with Trump’s visit to Cochise County, where he toured the US-Mexico border. During his visit, Trump addressed the ongoing border issues and criticized his political rival, Democratic presidential nominee Kamala Harris, for what he described as lax immigration policies. When asked by reporters about the ongoing manhunt for Syvrud, Trump responded, “No, I have not heard that, but I am not that surprised and the reason is because I want to do things that are very bad for the bad guys.”

This incident marks the latest in a series of threats against political figures during the current election cycle. Just earlier this month, a 66-year-old Virginia man was arrested on suspicion of making death threats against Vice President Kamala Harris and other public officials.

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Trump Media & Technology Group Faces Declining Stock Amid Financial Struggles and Increased Competition

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Trump Media & Technology Group’s stock has taken a significant hit, dropping more than 11% this week following a disappointing earnings report and the return of former U.S. President Donald Trump to the rival social media platform X, formerly known as Twitter. This decline is part of a broader downward trend for the parent company of Truth Social, with the stock plummeting nearly 43% since mid-July. Despite the sharp decline, some investors remain unfazed, expressing continued optimism for the company’s financial future or standing by their investment as a show of political support for Trump.

One such investor, Todd Schlanger, an interior designer from West Palm Beach, explained his commitment to the stock, stating, “I’m a Republican, so I supported him. When I found out about the stock, I got involved because I support the company and believe in free speech.” Schlanger, who owns around 1,000 shares, is a regular user of Truth Social and is excited about the company’s future, particularly its plans to expand its streaming services. He believes Truth Social has the potential to be as strong as Facebook or X, despite the stock’s recent struggles.

However, Truth Social’s stock performance is deeply tied to Trump’s political influence and the company’s ability to generate sustainable revenue, which has proven challenging. An earnings report released last Friday showed the company lost over $16 million in the three-month period ending in June. Revenue dropped by 30%, down to approximately $836,000 compared to $1.2 million during the same period last year.

In response to the earnings report, Truth Social CEO Devin Nunes emphasized the company’s strong cash position, highlighting $344 million in cash reserves and no debt. He also reiterated the company’s commitment to free speech, stating, “From the beginning, it was our intention to make Truth Social an impenetrable beachhead of free speech, and by taking extraordinary steps to minimize our reliance on Big Tech, that is exactly what we are doing.”

Despite these assurances, investors reacted negatively to the quarterly report, leading to a steep drop in stock price. The situation was further complicated by Trump’s return to X, where he posted for the first time in a year. Trump’s exclusivity agreement with Trump Media & Technology Group mandates that he posts personal content first on Truth Social. However, he is allowed to make politically related posts on other social media platforms, which he did earlier this week, potentially drawing users away from Truth Social.

For investors like Teri Lynn Roberson, who purchased shares near the company’s peak after it went public in March, the decline in stock value has been disheartening. However, Roberson remains unbothered by the poor performance, saying her investment was more about supporting Trump than making money. “I’m way at a loss, but I am OK with that. I am just watching it for fun,” Roberson said, adding that she sees Trump’s return to X as a positive move that could expand his reach beyond Truth Social’s “echo chamber.”

The stock’s performance holds significant financial implications for Trump himself, as he owns a 65% stake in Trump Media & Technology Group. According to Fortune, this stake represents a substantial portion of his net worth, which could be vulnerable if the company continues to struggle financially.

Analysts have described Truth Social as a “meme stock,” similar to companies like GameStop and AMC that saw their stock prices driven by ideological investments rather than business fundamentals. Tyler Richey, an analyst at Sevens Report Research, noted that the stock has ebbed and flowed based on sentiment toward Trump. He pointed out that the recent decline coincided with the rise of U.S. Vice President Kamala Harris as the Democratic presidential nominee, which may have dampened perceptions of Trump’s 2024 election prospects.

Jay Ritter, a finance professor at the University of Florida, offered a grim long-term outlook for Truth Social, suggesting that the stock would likely remain volatile, but with an overall downward trend. “What’s lacking for the true believer in the company story is, ‘OK, where is the business strategy that will be generating revenue?'” Ritter said, highlighting the company’s struggle to produce a sustainable business model.

Still, for some investors, like Michael Rogers, a masonry company owner in North Carolina, their support for Trump Media & Technology Group is unwavering. Rogers, who owns over 10,000 shares, said he invested in the company both as a show of support for Trump and because of his belief in the company’s financial future. Despite concerns about the company’s revenue challenges, Rogers expressed confidence in the business, stating, “I’m in it for the long haul.”

Not all investors are as confident. Mitchell Standley, who made a significant return on his investment earlier this year by capitalizing on the hype surrounding Trump Media’s planned merger with Digital World Acquisition Corporation, has since moved on. “It was basically just a pump and dump,” Standley told ABC News. “I knew that once they merged, all of his supporters were going to dump a bunch of money into it and buy it up.” Now, Standley is staying away from the company, citing the lack of business fundamentals as the reason for his exit.

Truth Social’s future remains uncertain as it continues to struggle with financial losses and faces stiff competition from established social media platforms. While its user base and investor sentiment are bolstered by Trump’s political following, the company’s long-term viability will depend on its ability to create a sustainable revenue stream and maintain relevance in a crowded digital landscape.

As the company seeks to stabilize, the question remains whether its appeal to Trump’s supporters can translate into financial success or whether it will remain a volatile stock driven more by ideology than business fundamentals.

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