Former President Donald J. Trump’s stake in Trump Media & Technology Group, his social media company, might provide him with much-needed financial relief once a long-awaited merger is finalized. The merger, with Digital World Acquisition Corp., a publicly traded shell company, has the potential to be worth as much as $4 billion for Mr. Trump.

This deal could come at a crucial time for the former president, as he faces the obligation to pay a $454 million penalty following a civil fraud ruling in New York. Digital World has scheduled a shareholder vote on the merger with Trump Media for March 22, presenting a significant opportunity for Mr. Trump to secure his financial future.

However, even if the merger goes through, Mr. Trump would need a waiver from a lockup provision that currently prohibits major stockholders from selling shares for at least six months. Despite these challenges, the potential financial lifeline offered by the merger could be instrumental for Mr. Trump.

The merger between Trump Media and Digital World has encountered various obstacles that have delayed its completion. The Securities and Exchange Commission’s two-year investigation into pre-public talks between the companies posed a significant roadblock. SPACs like Digital World are not allowed to have a deal lined up before their IPO, and this scrutiny from regulatory authorities has prolonged the merger process.

Additionally, a criminal investigation involving insider trading has further complicated matters. Three individuals were charged in connection with a scheme to profit from the merger announcement. These legal challenges have contributed to the delays in finalizing the deal.

Despite these hurdles, Mr. Trump is poised to own a substantial majority stake in the merged company, with 79 million shares potentially valued at almost $4 billion. The completion of the merger could mark a significant financial turning point for the former president.

The lockup provision in the merger agreement restricts major shareholders like Mr. Trump from selling their shares for six months post-closing. These provisions are standard in SPAC deals to prevent immediate sell-offs that could impact stock prices. However, there are provisions that allow for exceptions, such as transferring shares to a trust or family member.

While the lockup provision can be waived or amended, any changes must have a valid business rationale to avoid potential repercussions, such as shareholder lawsuits. Mr. Trump’s ability to navigate these restrictions and capitalize on his stake in the merged company will be crucial for his financial future.

Once the deal is finalized, shares of Digital World are expected to be rebranded under the symbol DJT, reminiscent of Mr. Trump’s previous endeavors in the public arena. However, challenges or delays could still arise, particularly from external parties seeking to obstruct the merger for political or economic motives.

Despite the insider trading charges levied against certain individuals, there is no evidence implicating Mr. Trump or his associates in any wrongdoing. The completion of the merger between Trump Media and Digital World could hold significant financial implications for Mr. Trump and shape his future endeavors.