Former ‘Apprentice’ Contestants Divest Stake in Trump Media
An investment firm established by two former contestants from the reality TV show “The Apprentice” has significantly reduced its stake in Donald J. Trump’s social media venture. According to a regulatory filing released on Thursday, United Atlantic Ventures divested nearly all of its 5.5 percent ownership in Trump Media & Technology Group.
In the days following the expiration of a lockup provision that prevented major investors, including Mr. Trump himself, from selling shares, United Atlantic sold approximately 7.5 million shares of the company. This lockup period ended on September 19, allowing for increased trading activity.
The firm’s founders, Andy Litinsky and Wes Moss, who were both contestants on the second season of “The Apprentice,” played pivotal roles in the establishment of Trump Media and its primary social media platform, Truth Social. The show played a crucial role in elevating Mr. Trump’s national profile prior to his presidential campaign in 2016.
As of now, with the stock trading at around $14 per share, the total value of their equity stake was approximately $100 million. While the lockup also applied to Mr. Trump, he stated just days before it lapsed that he had no intention of selling any of his 115 million shares. Despite this, his nearly 60 percent ownership in Trump Media has seen a dramatic decline in value over recent months, now estimated at $1.6 billion.
Since the expiration of the lockup, trading activity for Trump Media has increased noticeably, although the stock price has dipped nearly 5 percent during this period. Overall, since merging with a cash-rich special purpose acquisition company in March, the stock has plummeted by 78 percent.
Interestingly, both Mr. Litinsky and Mr. Moss were eliminated from “The Apprentice” by Mr. Trump himself, yet Mr. Litinsky later joined Trump’s team as the head of his television production company. After Mr. Trump departed from the White House in 2021, Mr. Litinsky and Mr. Moss proposed the idea of creating a social media platform tailored for Mr. Trump, which he found appealing, particularly after facing bans from several major social media platforms following the January 6, 2021, Capitol riot.
The collaboration resulted in the launch of Trump Media and the introduction of Truth Social, which has become a central channel for Mr. Trump as he campaigns for the presidency once again. However, tensions arose within a year of Truth Social’s launch, leading to a significant fallout between Mr. Trump, Mr. Litinsky, and Mr. Moss.
This year, Trump Media initiated a lawsuit claiming that the two men were not entitled to their substantial share distribution due to alleged underperformance in their roles, which they argued delayed the company’s entry into public markets. Ultimately, Mr. Litinsky and Mr. Moss prevailed in the court, securing their full allotment of shares.
According to the filing from Thursday, Mr. Litinsky is listed as a managing member of United Atlantic, which now retains only 100 shares of the original 7,525,000 shares it held in Trump Media.
