Shares in Donald Trump's social media business, Trump Media & Technology Group Corp (NASDAQ:DJT), surged 34% after it agreed to merge with nuclear fusion developer TAE Technologies.
TMTG, which owns the US president’s Truth Social platform, said the merger will make it one of the world’s first publicly traded fusion companies.
The deal has echoes of a SPAC deal, as TMTG has a pile of cash and a small and minimal social media business; as part of the transaction, it has agreed to provide up to $200 million of cash to TAE at signing and an additional $100 million upon initial filing of the Form S-4.
The next-generation fusion technology from California-based TAE is "poised for commercial application", TMG said.
Fusion is the same process that powers the sun and stars, and if it can be made commercial, it theoretically would be a limitless and environmentally friendly source of power.
Following the combination, which has been approved by the boards of both sides, the company will be jointly led by Trump Media chief executive Devin Nunes and TAE’s Michl Binderbauer.
The agreement values TAE at $53.89 a share, based on TMTG’s 30-day volume-weighted average price. Shareholders of each company will own 50% of the combined entity on a fully diluted basis, following the expected close in mid-2026, subject to regulatory and shareholder approval.
Funds from the combination are designed to help fast-track commercial deployment of TAE’s technology, which has been in development for over two decades, hitherto funded by more than $1.3 billion in private capital from Google, Chevron Technology Ventures, Goldman Sachs and Sumitomo,
TAE, which has built and operated five increasingly large fusion reactors and holds over 1,600 patents, aims to begin construction of a 50-megawatt electric fusion power plant in 2026, subject to approvals, with larger 350-500 MW plants planned for the future.
Nunes called fusion “the most dramatic energy breakthrough since the 1950s” and linked the transaction as being a key piece of the AI energy puzzle, "taking a big step forward toward a revolutionary technology that will cement America’s global energy dominance for generations".
"Fusion power will lower energy prices, boost supply, ensure America’s AI supremacy, revive our manufacturing base and bolster national defense," he said.
Binderbauer said TAE’s was "excited to identify our first site and begin deploying this revolutionary technology that we expect to fundamentally transform America’s energy supply".
The combined board will include Donald Trump Jr and investor Michael Schwab, who is expected to be named chair.
The group plans to operate additional businesses under the Trump Media umbrella, including Truth+, Truth.Fi, TAE Power Solutions and TAE Life Sciences.