Trump Media & Technology Group Corp. shares jumped sharply on Thursday after the company announced a $6 billion all-stock merger with TAE Technologies, a fusion power company.
The stock, which trades on the Nasdaq, rose to 36% to trade around $14, up from the previous close of $10.47. In premarket trading, the shares had already gained over 26%, reaching about $13.23.
The rally came after news that the merger will enable Trump’s entry into the energy business. Under the deal, Trump Media and TAE Technologies plan to work together to build what they describe as the world’s first utility-scale fusion power plant. The facility is expected to generate 500 megawatts of energy. Investors reacted positively to the announcement, pushing the stock to its highest level in months.
US President Donald Trump’s social media firm, Trump Media & Technology Group (TMTG) best known as the parent company of Truth Social on Thursday announced its decision to enter the fusion-power business through a $6 billion merger with privately held TAE Technologies.
A company focused on increasing the efficiency of power generation systems across the United States, TAE Technologies has raised more than $1.3 billion in private funding from investors, including Alphabet Inc’s Google and Chevron and is aiming to develop and sell next-generation neutral beam systems for fusion and related energy based applications.
Interestingly, the all-stock deal announced on Thursday comes just days after tech industry representatives approached government officials for federal funding in the nascent fusion industry.
Through this move, TMTG places a large bet on experimental technology as bigtech players drive a surge in energy demand with AI data centers and initiation of more tech based infrastructure projects. The merger also adds fusion tech to the already diversified portfolio of the Trump family that ranges from cryptocurrency to real estate holdings and mobile services.
What does this mean for TMTG? How will the new entity operate?
Under the proposed framework, shareholders of both companies will own about 50% of the combined entity after the deal closes towards the end of the first half of 2026. Following the deal’s closure, Trump Media and Technology Group will act as the holding company for a bunch of businesses including Truth Social, TAE Power Solutions and TAE Life Sciences.
As part of the transaction, TMTG has agreed to provide up to $200 million of cash to TAE at signing and an additional $100 million is available upon initial filing of the Form S-4.
As per the agreement, the new entity is supposed to have two co-CEOs at the helm. Michl Binderbauer who is a director of TAE technologies will take up the CEO position alongside David Nues, the present CEO of Trump media group. In an official statement, TMTG had earlier disclosed that the deal had been approved by both boards.
Hailing the merger as a strategic business move aimed at powering the technology of the future, David Nues said that Fusion power will be the most dramatic energy breakthrough since the onset of commercial nuclear energy and will ensure USA’s AI supremacy.
“Fusion power will be the most dramatic energy breakthrough since the onset of commercial nuclear energy in the 1950s—an innovation that will lower energy prices, boost supply, and ensure America’s A.I.-supremacy, revive our manufacturing base and bolster national defense,” he said.
The combined company will be managed by a nine-member board of directors, composed of two directors from TMTG—includes Nunes and Donald J. Trump Jr.—two directors from TAE—including Binderbauer and Schwab—and five other independent directors to be selected and named later.
Company performance
The merger announcement was quick to draw reaction from market participants as shares for the money-losing Trump Media surged more than 33% in premarket trading.
TAE has raised more than $1.3 billion in private funding from a line of investors, including Alphabet Inc’s Google, Goldman Sachs and Chevron. Trump Media, which mainly generates revenue from advertising on the Truth Social platform, has consistently clocked losses since its inception. It posted a decline in revenue and a loss of $54.8 million in the third quarter that ended in September.
What is fusion technology?
As the name suggests Fusion power business focuses on generating cleaner forms of energy. Nuclear fusion is a nascent technology that aims to generate electricity by harnessing the process that powers the sun.
As per Reuters, the two companies plan to site and begin construction on the world’s first utility-scale fusion power plant after the deal closes around July 2026.
This move by the Trump media group comes in the backdrop of talks around expanding sources of cleaner and reliable nuclear power to meet the demand of an increasing number of AI datacenters across the country.