A new regulatory filing reveals significant financial losses for former President Donald Trump’s social media company, Truth Social, casting doubt on the platform’s future viability.
According to a Tuesday Prolific North reporta recent filing with the Securities and Exchange Commission by Digital World Acquisition Corp partner company Trump Media and Technology Group has lost $73 million since Truth Social launched in February 2022. Total net sales amounted to only $3.7 million over this period, highlighting the importance of the platform. is struggling to attract a sustainable audience and profit from its operations.
This is the first time internal financial details of privately held TMTG have been shared publicly.
The Trump Media company had ambitious plans to take on big tech and attract millions of disaffected conservatives when it was first announced in October 2021. TMTG was valued at $875 million at the time, although the Trump’s personal stake only amounts to 5-25 million dollars. , according to the latest figures.
However, the platform has struggled to build an audience, with Trump currently having just over four million followers – a far cry from the nearly 90 million he had on Twitter when he was banned after January 6. the demand for a “MAGA-only” social network, even among core Trump supporters. Combined with the reported cash burn, Truth Social’s future remains very uncertain.
TMTG hopes to raise new funds by completing a merger with Digital World, a specialty acquisition company, but that deal has been repeatedly delayed due to SEC investigations. In September, Digital World shareholders approved a 12-month extension to complete the transaction, avoiding a liquidation deadline that would have dissolved the partnership and returned $300 million to shareholders.
However, the road ahead seems strewn with pitfalls for this struggling newcomer on social networks. The SEC filing even included a section outlining the substantial risks of TMTG’s association with Trump, from his legal troubles to the bankruptcies of his former companies.
For now, the Truth Social platform continues to operate and provide an online space for Trump supporters – but its ability to defy the odds and achieve sustainable growth remains a big open question.