MW GrabAGun names Donald Trump Jr. as adviser in bid to lift stock-listing visibility
By Steve Gelsi
Donald Trump Jr. has been named an adviser to online firearms retailer Grab A Gun, which plans to go public this year
GrabAGun on Monday named Donald J. Trump Jr. an adviser and announced he will be an equity shareholder once the online gun retailer goes public in the coming months to become the latest stock with direct involvement from the Trump family.
Coppell, Texas-based Metroplex Trading Company LLC, which operates under the name GrabAGun, said it reached a $150 million deal to combine with Colombier Acquisition Corp. II $(CLBR)$ to become a publicly traded company.
Colombier's stock fell 6.7% Monday.
The combined company will be renamed GrabAGun Digital Holdings Inc. and will trade under the ticker symbol "PEW" on the New York Stock Exchange when the deal closes, which is expected this summer.
Donald Trump Jr. has been named an adviser and equity holder in GrabAGun.
The deal announcement comes less than a year after Trump Media & Technology Group Corp. $(DJT)$, the parent of Donald Trump's Truth Social platform, became a public company in March 2024.
Trump Media & Technology shares have risen about 88% in the last three months, around Trump's re-election to the White House. The stock has a market capitalization of about $7.5 billion, although the company itself reported about $1 million in revenue in its most recent quarter.
Jay Ritter, a finance professor at the University of Florida who tracks new stocks, said having a Trump family member as an adviser brings "visibility" to GrabAGun.
"For Donald Trump Jr., the benefits are twofold," Ritter added in an email to MarketWatch. "The stock that he has been given in return for being an adviser is worth something, and being associated with an online retail gun seller is another flag that he has planted in the ground of the far-right libertarian universe."
GrabAGun also offers a "viable business," with revenue of $99.5 million in the past 12 months, Ritter said, noting that Truth Social has much smaller revenue.
In December, PSQ Holdings Inc. $(PSQH)$, which does business under the name PublicSquare, tapped Donald Trump Jr. as a member of its board of directors.
Meanwhile, Truth Social has had a cloud-services deal with Canada's Rumble Inc. (RUM) since 2021.
"Much like Truth Social, PublicSquare and Rumble have led the charge to protect the First Amendment, GrabAGun will do the same for the Second Amendment," Trump Jr. said in a prepared statement.
Under the deal terms, GrabAGun equity holders will receive $100 million in stock at $10 per share and $50 million in cash.
Meanwhile, Trump Media & Technology's stock was up 2.6% on Monday.
Trump Jr. is also on the board of Trump Media & Technology.
Also read: Meme stocks were fueled by Roaring Kitty and 'Trump trades' this year. What can we expect in 2025?
-Steve Gelsi
This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
January 06, 2025 10:13 ET (15:13 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.