Trump Media & Technology's shares fell about 6% on Friday after President-elect Donald Trump moved his stake in the social media company to a revocable trust controlled by son Donald Trump Jr. 

Trump transferred 114.75 million shares, or 53% of Trump Media & Technology Group's outstanding stock, to the revocable trust of which he is the sole beneficiary, according to securities filings.

The move comes after Trump said in November that he had no intention of selling his shares in the company, which owns the Truth Social media platform. With his eldest son controlling the trust, the transfer could be a way to offload shares without Trump selling them himself, according to University of Florida finance professor Jay Ritter.

“His son could sell some or all of the shares, arguing that this is just normal diversification,” Ritter said. “If I was the trustee, that’s what I would do, rather than have all the eggs in one basket ‒ and especially if all your eggs are in an overvalued basket.” 

Trump Media, which had a net loss of $19.2 million and earned $1 million in revenue in the latest quarter, is valued at over $7 billion. Trump's stake in the company was valued at more than $4 billion based on the stock's last closing price of $35.41.

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The transfer of shares may also be an attempt to avoid potential conflicts of interest for the incoming president, as Trump Jr. gains voting and investment power over the securities. Trump transferred assets to the same trust before his first term as president.

But Trump retains “a lot of control” as the "indirect" owner of the shares, according to Naomi Cahn, a distinguished professor of law at the University of Virginia and expert in family law, trusts and estates.

Trump can change the terms of the trust, remove the trustee or scrap the trust entirely, Cahn said. Meanwhile, his son has an obligation to manage the trust in the interest of his father.  

“He still has a strong interest in these shares. He just doesn’t have legal title to them,” Cahn said.   

“My guess is that Donald Trump is not the type of guy to give up control of anything,” added Tuttle Capital Management CEO Matthew Tuttle in an email. “So while the gesture on its face probably satisfies the ethics issues, moving to a trust controlled by your son probably 'wink wink, nod, nod’ keeps it in your control.” 

Trump Media did not immediately respond to a request for comment.

Trump nominated two board members ‒ Linda McMahon and Kashyap “Kash” Patel ‒ for positions in his administration. CEO Devin Nunes has been tapped to serve as chairman of the President's Intelligence Advisory Board.

Reuters contributed to this report.

(This story was updated to add new information.)

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