Former President Donald Trump’s big social media venture, Truth Social, is taking a hit in the money department, according to the latest scoop from Digital World Acquisition Corp., the company partnering with Trump on this ambitious project.
As of November 16, a regulatory filing spilled the beans, revealing that Trump’s media company, TMTG, has faced a whopping $73 million in losses since Truth Social launched in February 2022. This financial bombshell is raising serious questions about the platform’s future and whether it can stand its ground in the cutthroat world of social media.
This financial revelation is the first time the inside scoop on TMTG’s finances has seen the light of day. A report from Prolific North on Tuesday spilled more beans, indicating that Truth Social’s total sales barely scraped $3.7 million during this time, highlighting the platform’s struggle to attract a solid audience and turn a profit.
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Back in October 2021, when TMTG revealed its plans for Truth Social, it aimed high – taking on Big Tech and uniting disenchanted conservatives. At that time, TMTG was valued at a staggering $875 million, with Trump’s personal stake ranging between $5-25 million according to the latest figures.
Despite these grand plans, Truth Social is struggling to build a substantial user base. Trump’s follower count on the platform is just over four million, a far cry from the almost 90 million he had on Twitter before getting the boot after the January 6 events. Industry experts think this sluggish growth is due to a lack of interest in a MAGA-only social network, even among Trump’s core supporters. With the reported financial losses, the future of Truth Social seems shaky.
To boost its bank account, TMTG wants to merge with Digital World, a special-purpose acquisition company. But this deal has hit several roadblocks, mainly thanks to investigations by the SEC. In September, Digital World shareholders gave the green light for a 12-month extension to complete the transaction, avoiding a potential meltdown that could have sent $300 million back to shareholders.
Despite this breather, the road ahead looks bumpy for Truth Social. The SEC filing laid out a laundry list of risks tied to Trump, from legal troubles to the bankruptcies of his past companies. As of now, Truth Social is still running, providing a cyber haven for Trump supporters.
The million-dollar question is whether it can defy the odds and grow sustainably or if it’ll crumble under the pressure of the competitive social media world. Only time will reveal the destiny of Trump’s digital experiment.
