Source: Sharecast
News of the deal sent stock in the Truth Social owner surging in pre-market trade, up 22% at $12.80, though still only a fraction of the $40-plus levels seen at the start of the year.
The proposed deal, which will create one of the world’s first publicly traded fusion companies, has been designed to use TMTG's strong balance sheet to accelerate the rollout of TAE's technologies, providing $200m in cash upfront to TAE and an additional $100m upon completion.
The combined company is hoping to start construction on the world's first utility-scale fusion power plant at 50MWe in 2026, with further plants planned for the future expected to be 350-500MWe.
"Fusion power plants are expected to provide economic, abundant, and dependable electricity that would help America win the A.I. revolution and maintain its global economic dominance," the companies said in a statement.
TAE has previously raised more than $1.3bn in private capital to date, since its founding in 1998, with backers including Google, Chevron Technology Ventures, Goldman Sachs and Charles Schwab.
TMTG's chair and chief executive Devin Nunes will serve as the co-CEO of the new combined company, along with TAE CEO Michl Binderbauer.
“Trump Media & Technology Group built uncancellable infrastructure to secure free expression online for Americans, and now we’re taking a big step forward toward a revolutionary technology that will cement America’s global energy dominance for generations," Nunes said.
"TMTG brings the capital and public market access to quickly move TAE’s proven technology to commercial viability.”
Shareholders from each entity are expected to own 50% of the combined company at the transaction's close.
