Donald Trump has never been one to admit that he makes mistakes, much less learn from them in any way, and he’s proving that point beyond a shadow of a doubt when it comes to his big Truth Social deal.
The scandal-plagued ex-president’s Truth Social merger was finally successful, after more than a few less-than-minor bumps in the road, and as part of that dead, Trump intends to take the Truth Social platform public — a move that he hopes will result in a windfall of cash into his bank account. However, it’s also the very same move that once bankrupted and ruined one of his companies in the past.
On the heels of the Truth Social merger and subsequent plan for the platform to go public, CNBC released a report noting that this particular business move almost perfectly mirrors a past move made by Trump that ultimately cost him his Trump Hotels and Casino Resorts.
CNBC writes, “While a 2016 Washington Post review found that Trump made over $44 million, the company — Trump Hotels and Casino Resorts — lost more than $1 billion and ended up in bankruptcy.”
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“This time around, there’s at least one similarity between the two ventures separated by decades. The newly merged company that’s set to go public, Trump Media, will be listed on the Nasdaq stock exchange with the letters DJT, Trump’s initials,” their report continues. “Trump Hotels and Casino Resorts used the same stock ticker when it went public with great fanfare in 1995.”
According to CNBC, that Trump-owned company “lost money every year, but its stock prices did well — for a time. In the initial public offering, the company raised $140 million, selling 10 million shares at $14 each.”
However, that success was extremely short-lived.
“By 1996, the stock reached a high of $35 a share before plummeting later that year, in part because the company bought another casino for $100 million more than its estimated $400 million value, The New York Times reported in 2016,” the report explains. “The company, meanwhile, kept bleeding cash. The year the stock peaked, it lost $66 million. In 1999, it lost $134 million. And in 2004 — when the company filed for Chapter 11 bankruptcy protection and was delisted from the New York Stock Exchange — it lost $191 million, according to a CNBC review.”
Instant gratification has never really paid off well for Trump and, frankly, it seems that this time won’t be any different.
Read the full CNBC report here.
Featured image via Flickr/Gage Skidmore, under Creative Commons license 2.0
