Trump Media Tech Group reaches asset acquisition agreement to support TV streaming services

Trump Media Technology Group $Trump Media & Technology(DJT.US)$ signed an asset acquisition agreement on Wednesday to acquire nearly all of the assets of WorldConnect Technologies (WCT) or its affiliates in an all-stock deal.

The deal aims to provide linear TV streaming services for the media company's planned content distribution networks (CDNs)-initially through the Truth Social platform and later through standalone apps.

In April, Trump Media Tech Group announced plans to launch a live video streaming platform and said it would bring live television to its Truth Social network in three phases.

The acquisitions announced on Wednesday primarily relate to certain agreements, including option agreements between WCT, Perception Group, Perception TVCDN and FORA (FOrum RAčunalništva) and certain CDN agreements.

Trump Media Technology Group expects to acquire worldwide non-exclusive perpetual license rights from Perception Group and its global affiliates for the novel CDN technology it intends to use in its content distribution network. The agreement also includes a fortuitous opportunity for Trump Media Technology Group to acquire Perception directly in the future.

Meanwhile, Perception's operations in areas of the U.S. market where it could compete with Trump's media tech conglomerate will face certain restrictions for five years.

The transaction will be financed upon closing through the issuance of up to 5.1 million shares of DJT common stock and $17.5 million of funds, which are expected to be paid over three years.

The transaction is expected to close on the day the company implements Perception software and network, and all backend API services are generally available on iOS, Google/Android and web media services, with streaming enabled from at least one data center.

Separately, Trump Media Technology Group has finalized a long-term equity financing arrangement to support its expansion in the next three years.

Under the standby equity purchase agreement, the company will have the right to issue up to $2.5 billion of common stock to Yorkville Advisors over three years. The subscription price Yorkville will pay per share will be 2.75% below the market price.

Trump Media Tech Group intends to strategically use the agreement to raise and deploy funds.