Trump has been busy out of office, repositioning his business in a way that could allow him to make money from his 2024 run.
Running for president does not usually help billionaires become richer. Consider Mike Bloomberg, who blew $1.1 billion in 2020. Or Tom Steyer, who spent $342 million. Or Donald Trump, who shelled out $66 million in 2016, then managed to anger his tenants, lenders and business partners by refusing to admit he lost in 2020.
Times have changed. Trump, who announced a 2024 bid Tuesday night, has reworked his business, putting it in position to profit from his supporters while insulating it from potential opponents. The shift started with the creation of the Trump Media and Technology Group, the parent company of Trump’s Twitter knockoff, Truth Social. Trump launched the app in May. Four months later, Forbes pegged Trump’s stake in the business at $730 million. It is the largest asset in the former president’s $3.2 billion empire—and it could be worth even more if the former president wields it like a flamethrower in the 2024 race.
Controversy is bad for most businesses, but social media companies thrive on it. They do not have to worry much about turning off guests (unlike hotels) or angering members (unlike golf clubs) or damaging their brands (unlike licensing businesses). For social media firms, conflict brings attention, which draws users, who attract advertisers. Elon Musk, the new owner of Twitter, understands this dynamic. “I hope they keep cursing me on Twitter, as it increases advertising revenue!” he said on his platform Sunday.
There are already signs that Trump is benefiting from his decision to run. Forbes estimated the value of Trump’s stake in its parent company at $10 per share two months ago, based on the price that a handful of big-money investors agreed to pay to get involved. Retail investors, however, think it is worth much more. After rumors of a Trump campaign heated up earlier this month, shares of a special purpose acquisition company planning to merge with Trump’s business surged 66% from $17.48 to $29.10, before settling at its current $25.37—a figure that implies investors believe Trump’s interest is worth $2.5 billion, $1 billion more than they thought it was worth 12 days ago.
Trump has also taken steps to shield his business from the downside of controversy. In May, he sold his money-losing hotel in Washington, D.C. for a reported $375 million. It was a tremendous deal, not just since it came with a huge price tag, but also because it allowed Trump to divest from his most prominent consumer-facing business, leaving him less vulnerable to backlash.
These days, Trump does not have to worry as much about banks as he previously did. Critics once questioned whether anyone would ever lend to him again. Then the real estate mogul reworked close to $1 billion in debt, paying off some loans and refinancing others. His new creditors, the most important of which is a bank named Axos, know they are dealing with a divisive figure. They are not likely to be scared off by negative headlines at this point.
The damage to Trump’s brand has probably already been done. Several licensing partners, including Macy’s and Serta, backed away during the 2016 campaign. Trump’s name came off buildings where developers had once paid to use it. The Trumps now seem to be limited to dealing with companies who do not mind controversy, like the Saudi real estate firm that reportedly just inked a new licensing deal with the former first family. Such deals will undoubtedly cause concerns about corruption, but they are unlikely to inflict additional damage to Trump’s business.
Most importantly, Trump no longer has to follow the same route most billionaires take to office, spending gobs of money to gain relevancy and attention. After Trump initially bragged about relying on his own fortune rather than outside donors, the real estate mogul gradually convinced his followers to hand him piles of cash. Following his 2020 election loss, one of his committees still managed to collect more than $100 million. In 2024, Trump may finally fulfill a prophesy he issued 22 years ago. “It’s very possible,” he told Fortune in 2000, “that I could be the first presidential candidate to run and make money on it.”