- The first-ever public Truth Social filings were unveiled on Monday
- Comes as Trump’s tech start-up plans to merge with Digital World Acquisitions
- Truth Social bleeds money – despite Trump making it his primary outlet
Donald Trump’s Truth Social media platform has lost a whopping $31.6 million since its launch in early 2021 to mid-2023.
Monday’s filings marked the first time Trump Media and Technology Group’s (TMTG) financial details were shared publicly, and the numbers suggest that despite Trump making Truth Social his primary social media platform, it doesn’t translate into meaningful revenue for the technology startup.
TMTG, the parent company of Truth Social, plans to merge with Digital World Acquisitions Corp., the filing shows, as the ex-president’s social media site continues to bleed.
The balance sheet was made public as part of the merger – and is proving to be a complicated financial situation for the young company. It states that there is a ‘change in the fair value of derivative liabilities’ that is not related to the company’s day-to-day expenses.
The filing states that “as of June 30, 2023 and December 31, 2022, management has significant doubts as to whether TMTG will have sufficient resources to meet its obligations as they become due.”
Donald Trump’s social media company has lost $73 million in the less than two years since its launch, according to new documents revealed Monday as 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 if material progress is not made toward the completion of the merger with Digital World,” the assessment adds.
Since launching in February 2021, TMTG has only brought in $5.8 million in net sales.
Trump announced the launch of his own social media app in October 2021 after being booted from Twitter.
He said Truth Social would “stand up to Big Tech” companies.
Trump uses Truth Social exclusively to continue his daily rants – often in all caps – about the news of the day, the ongoing “witch hunts” against him and the ongoing “election interference” by his rivals as he runs for Republican office. nomination for president in 2024.
Since being banned from Twitter two days after the January 6, 2021 Capitol riot, Trump has only posted once since his ban was lifted by Elon Musk when he took over Twitter and changed its name to X.
On August 24 this year, Trump posted a photo of his mugshot after turning himself over to authorities for booking in Georgia as part of the lawsuit against him over the scheme to overturn the 2020 election results.
In its first ten months of operation in 2021, Truth Social faced a loss of $59 million, with net revenue of just $2.1 million.
In 2022, the company posted a profit of $50 million, but in the first half of 2023 it lost $23 million on net sales of $2.3 million.
TMTG also eliminated several positions in March, the filing showed.
Since launching in early 2022, TMTG has only raised $3.7 million while losing nearly 20 times that amount. Now TMTG plans to merge with Digital World Acquisitions Corp. – a special acquisition company
The mass layoffs followed a review of all departments, with the biggest impact being TMTG’s streaming video-on-demand and infrastructure teams.
The independent registered public accounting firm for TMTG says there are growing concerns about the tech startup’s financial condition – and says the losses cast doubt on Truth Social’s viability.
Digital World Acquisition Corp. is a special purpose acquisition company (SPAC) formed for the purpose of 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 if material progress is not made toward the completion of the merger with Digital World.”
The original version of this article reported figures originally published by Reuters, which claimed Truth Social had lost $73 million since launch. This has been corrected to say the platform lost $31.6 million through mid-2023.