Washington (Washington Insider Magazine) – Trump’s Media receives major investments from large firms and foreign entities, raising concerns over political influence and financial motives amid losses.
As reported by The Guardian, recent SEC filings show that large investors have substantially increased their investments in Trump Media and Technology Group, raising stakes by hundreds of millions.
What drives big investors to increase their stake in Trump Media?
The findings fuel fresh doubts about whether major corporations are trying to secure political goodwill from Trump by investing in his enterprises. TMTG oversees the Truth Social app, where the president posts almost daily, and also manages financial products and a streaming arm.
Some funds backing Trump Media have GOP ties; Charles Schwab Investment Management, founded by Trump ally Schwab, holds a notable position.
What did critics say about Trump’s Media surge and investor motives?
Critics argued the heavy investments are puzzling, given the lack of significant business growth and the company’s $400 million loss last year.
Tony Clark, head of the watchdog group Accountable.us, which oversees efforts to monitor the role of special interest groups in shaping political decisions in the U.S.
He said in a statement,
“Donald Trump’s refusal to divest from his publicly traded company has predictably prompted huge investments from wealthy special interests that could use a favour from the president.”
Mr Clark added,
“Institutional Wall Street investors and even a foreign company with business before the administration have effectively offered a form of tribute by bulk purchasing shares in DJT on the open market, which helps juice the value of Trump’s own shares.”
He stated,
“Considering Trump Media has been haemorrhaging hundreds of millions of dollars in losses, there’s little doubt these hedge fund managers are hoping for a different kind of return on their investment.”
Mr Clark continued,
“The President might as well put up a ‘bribe me’ sign on the White House – it’s corruption out in broad daylight.”
Why did Charles Schwab increase its stake in Trump Media?
Charles Schwab Investment Management Inc, a division of the Charles Schwab Corporation, is often listed as one of the top 20 banks in the US.
During the last quarter of 2024, the firm increased its stake in TMTG by nearly 30%, closing the year with 788,722 shares worth $19.7m.
Schwab stated that this aligns with their standard investment practices.
In an emailed statement, a spokesperson wrote,
“As a large asset manager with nearly $400bn in ETF [exchange-traded funds] assets under management, our position in any publicly traded company is driven by our index funds and ETFs that track an underlying index. The extent a position changes is due to the change in the index itself or client flows into the ETF and is not reflective of any view of a company.”
How did Charles Schwab’s connections with Trump spark accusations of market manipulation?
During an April Oval Office meeting with Nascar drivers, Mr Trump introduced Charles Schwab as
“more than just a company; he is an individual.”
At 88, Charles R. Schwab earned billions by cutting costs on share trading for retail investors and introducing groundbreaking financial products like ETFs. A longtime Republican donor, Schwab supported a legal fund for Trump’s battles since 2017 and suspended his PAC after the January 6 Capitol attack, citing “hyperpartisan” politics.
Despite this, Schwab remains in Trump’s sphere, as evidenced by their meeting on April 11 in the Oval Office.
Trump informed the group that Schwab had “made two and a half billion today,” aligning with a market bounce after Trump eased his Liberation Day tariffs from April 2.
How did Gina Rinehart become a new shareholder in Trump’s Media company?
Gina Rinehart’s Hancock Prospecting, an Australian mining company, became a new shareholder in the fourth quarter. It acquired 150,000 shares worth $3.7 million.
Trump supporters in the US have dubbed Rinehart as a “female Donald Trump,” with Rinehart herself calling it a “Trumpette” and being a part of the Trump fan club. She attended his 2024 campaign launch at Mar-a-Lago and has urged Australian leaders to “Make Australia Great Again.”
Ms Rinehart stated, “We need a USA-style Doge that delivers action, one that returns dollars to our pockets and investment back to Australia.”
She supported Trump in ads, attended his events, and promoted his policies to Peter Dutton, who lost to Albanese.
