Since launching in early 2022, former President Donald Trump’s Truth Social has brought in $3.7 million in net sales and lost $73 million.
The figures mark the first time internal financial details on the social platform have been shared publicly, and they suggest that while Trump has made Truth Social his main social media platform, this has not translated into meaningful revenue for the tech startup, which is owned by Trump Media & Technology Group (TMTG).
The figures were revealed in a new financial disclosure from TMTG’s SPAC merger partner Digital World Acquisition Corp. The filing showed that Truth Social lost $50 million on just $1.4 million in net revenue in 2022, and through the first six months of this year it brought in $2.3 million but lost $23 million.
TMTG’s financial condition is such that “TMTG’s independent registered public accounting firm has indicated that TMTG’s financial condition raises significant doubt about its ability to continue as a going concern,” the filing said.
In a candid assessment of its operations, the filing says that “management has significant doubt as of June 30, 2023 and December 31, 2022 that TMTG will have sufficient resources to meet its obligations as they become due, including obligations relating to promissory notes previously issued by TMTG,” and that “TMTG believes it may be difficult to raise additional funds through traditional financing sources in the absence of material progress toward the completion of the merger with Digital World.”
The filing shows that if TMTG fails to complete its merger with DWAC and get the pot of money at stake, the company may not survive.
While TMTG was valued at $875 million when the merger with DWAC was first announced, Trump revealed in his latest financial disclosure form that his controlling stake is valued at between $5 million and $25 million.
The amended S-4 filing also highlighted a number of updates and risk factors related to the company, including the fact that the long-planned streaming video service appears to be off the table for now. The filing makes no mention of the service (which has been plagued with conservative comedy specials and “Trump-specific programming”) except in regards to layoffs.
“On March 1, 2023, TMTG eliminated several positions,” the filing said. “This action followed a review of all departments, and had a particularly significant impact on TMTG’s streaming video on demand (SVOD) and infrastructure teams.”
Trump announced his technology and media company at the end of 2021, calling it a competitor to major technology platforms such as Facebook and Twitter.
In May 2022, Trump agreed to make Truth Social his primary social platform, agreeing not to post on other platforms until six hours after sending a “Truth.” However, since the deal was first signed with TMTG, Elon Musk has taken over Twitter and reinstated Trump’s account (he also renamed it ‘X’).
According to Monday’s filing, Trump “verbally confirmed” on Oct. 30 that he will continue to abide by that agreement, at least until the merger is completed.
And the filing details a number of risks related to TMTG’s business and operations… but also includes an entire section titled “Risks Related to Our Chairman, President Donald J. Trump,” citing his ongoing legal challenges , the companies he owned have filed for bankruptcy. (like his casino in Atlantic City), and the companies that licensed his name (like Trump Vodka and Trump Shuttle) subsequently going bankrupt.
“There are no guarantees that TMTG will not also fail,” the company warns.