Trump Media Merges With Google Fusion Power Firm TAE For $6 Billion
Shareholders of both firms are set to own 50% of the shares in the company.
Truth Social's parent company, Trump Media and Technology Group, merged with the fusion power firm TAE Technologies, backed by Google, according to reports on Thursday.
TAE was in collaboration with Google Research for over a decade with regards to fusion science. The firm's backers include Chevron and Sumitomo Corporation of Americas.
The firm was founded in 1998, and its other operations include the energy-storage business and a life sciences arm that creates biologically targeted radiotherapy to treat cancer.
Shareholders of both firms are set to own 50% of the shares in the company. Trump Media and Technology Group was announced to be the holding company for Truth Social as well as TAE Life Sciences and TAE Power Solutions.
Post the merger, Trump Media's shares jumped close to 33% in early trade. The company had been tanking over the course of the year, losing close to 70%.
The two firms plan to start on creating the "world's first utility-scale fusion power plant" in 2026. TAE is planning to develop and sell next‑generation neutral beam systems for fusion and related uses in a more cost-effective fashion.
Trump Media is set to pay around $200 million in cash to TAE after inking the deal and $100 million more after the initial filing of the registration. The deal was approved by the boards of both firms.
Nuclear power is emerging as a more sought after option for energy creation by firms in the tech industry who have restarted reactors, expanded existing plants and inked contracts for future small modular reactors.
Organisations have not found success in using nuclear fusion to create a profitable nuclear reactor so far.
The roadblocks to commercial viability include not being able to get enough energy out of reaction in comparison to the energy that is put into it, as well as having plants that are able to hold out against streams of fusion reactions to power grids.
