Trump's Truth Social lost $73 MILLION since launching: New filing
Trump’s Truth Social has lost $73 MILLION since it launched and has only taken in $3.7 million, damning filing says
- The first-ever public Truth Social filings were revealed on Monday
- Comes as Trump’s tech start-up plans to merge with Digital World Acquisitions
- Truth Social is bleeding money – despite Trump making it his primary outlet
Donald Trump’s Truth Social media platform has lost a whopping $73 million in the less than two years since its launch.
Monday’s filings were the first time Trump Media and Technology Group (TMTG) financial details were shared publicly and the numbers suggest that despite Trump making Truth Social his primary social media platform, it is not translation to meaningful revenue for the tech startup.
TMTG, the parent company of Truth Social, plans to merge with Digital World Acquisitions Corp., the filing reveals as the ex-president’s social media site continues to bleed.
The balance sheet was made public as part of the merger – and proves a complicated financial situation for the young company. It states there is a ‘change in fair value of derivative liabilities’ unrelated to the day-to-day expenses of the company.
The filing says that ‘as of June 30, 2023, and December 31, 2022, management has substantial doubt that TMTG will have sufficient funds to meet its liabilities as they fall due.’
Donald Trump’s social media company has lost $73 million in the less than two years since launching, new filings revealed Monday as the parent company Trump Media and Technology Group plans to merge
‘TMTG believes that it may be difficult to raise additional funds through traditional financing sources in the absence of material progress toward completing its merger with Digital World,’ the assessment adds.
Since launching in early 2022, TMTG has only brought in $3.7 million while losing nearly 20 times that.
Trump announced October 2021 the launch of his own social media app after being booted from Twitter.
He said Truth Social would ‘stand up to Big Tech’ companies.
Trump exclusively uses Truth Social to go on his daily rants – many times in all capital letters – about the news of the day, the ongoing ‘witch hunts’ against him and the continued ‘election interference’ by his rivals as he runs for the Republican nomination for president in 2024.
Since being barred from Twitter two days after the January 6, 2021 Capitol riot, Trump has only posted one more time after his ban was lifted by Elon Musk when he acquired Twitter and rebranded it to X.
On August 24 this year, Trump posted an image of his mugshot after turning himself over to authorities for booking in Georgia as part of the lawsuit against him for the scheme to try and overturn the 2020 election results.
In its first year in 2022, Truth Social faced a loss of $50 million, with set sales of just $1.4 million.
For the entire first year-and-a-half of operation, the company lost $23 million with net sales of $2.3 million.
TMTG also eliminated several positions in March, the filing revealed.
Since launching in early 2022, TMTG has only brought in $3.7 million while losing nearly 20 times that. Now TMTG plans to merge with Digital World Acquisitions Corp. – a special purpose acquisition company
The mass layoffs followed a review of all departments, most significantly impacting TMTG’s streaming video on demand and infrastructure teams.
The independent registered public accounting firm for TMTG indicates growing concern about the financial condition of the tech startup – and says the losses raise doubts about Truth Social’s viability.
Digital World Acquisition Corp. is a special purpose acquisition company (SPAC) formed for effecting a merger, capital stock exchange, asset acquisition, stock purchase or reorganization with one or more businesses.
‘TMTG believes that it may be difficult to raise additional funds through traditional financing sources in the absence of material progress toward completing its merger with Digital World.’
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