In a recent financial disclosure by Digital World Acquisition Corp. (DWAC), a merger partner with Trump Media & Technology Group (TMTG), it has been disclosed that Truth Social, Donald Trump’s foray into social media, incurred a staggering $73 million loss in net sales. Launched in early 2022, Truth Social aimed to rival tech giants like Facebook, but the filings indicate a struggling platform.
The Hollywood Reporter broke the news, detailing the financial downturn. In 2022, Truth Social experienced a loss of $50 million, with net sales at a mere $1.4 million. Though 2023 showed a slight improvement with $2.3 million in sales, losses continued, reaching $23 million.
Donald Trump’s stake in Truth Social, estimated between $5 to $25 million, is now under scrutiny. The financial disclosure raises concerns, with the report noting, “[Trump Media & Technology Group’s] independent registered public accounting firm has indicated that TMTG’s financial condition raises substantial doubt as to its ability to continue as a going concern.”
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The ongoing merger between TMTG and DWAC hangs in the balance. DWAC warns that unless Truth Social starts generating significant revenue promptly, the merger could collapse, leaving TMTG in a precarious position.
The potential merger was seen as a lifeline for Truth Social, injecting much-needed cash. Without it, the future of TMTG appears uncertain.
Truth Social’s challenges multiplied when Elon Musk, the CEO of Tesla, took over Twitter and reinstated previously banned figures. Additionally, Meta’s launch of Threads drew attention away from Truth Social, as Biden administration figures actively engaged on the Meta platform.
Legal Woes for Trump
In parallel developments, former Trump attorney Jenna Ellis, who pleaded guilty last month for her role in attempting to overturn election results in Georgia, is now cooperating with prosecutors. Ellis revealed in an interview that in late 2020, Trump had no intention of leaving the White House “under any circumstances.” This revelation sheds light on the tumultuous post-election period.
Meanwhile, Trump’s eldest son, Donald Trump Jr., resumed his defense in Manhattan. He attempted to convince the court of his father’s real estate prowess, presenting a slideshow on the history of the Trump Organization and its achievements. The Trump family faces charges of inflating property values to secure loans, which they vehemently deny.
As legal proceedings unfold, the financial struggles of Truth Social and the intricate details of Trump’s legal battles continue to make headlines, leaving the future of both in a state of uncertainty.
