The Financial Woes of Truth Social: Trump’s Social Media Platform Loses $73 Million in Net Sales
Former President Trump’s foray into the social media world with his platform, Truth Social, has hit a significant financial roadblock. Since its official launch in February 2022, the platform has reported a staggering $73 million in net sales loss, according to a recent financial disclosure filing from Digital World Acquisition Corp. (DWAC).
Digital World is the merger partner with Trump Media & Technology Group (TMTG), in which Trump owns a stake last valued at between $5 million and $25 million. The filing revealed that Truth Social lost $50 million on just $1.4 million of net sales in 2022, and an additional $23 million within the first six months of 2023. The troubling financial situation was first reported by The Hollywood Reporter.
The filing also highlighted a dire scenario for TMTG, stating that if it is unable to complete its merger with DWAC and receive more funds, the company may not survive. Trump Media & Technology Group’s independent public accountants have indicated that the company’s financial condition raises substantial doubt as to its ability to continue as a going concern.
Additionally, the filing emphasized the close ties between Truth Social’s fortunes and that of Trump, stating that adverse trends or a drop in Trump’s involvement could adversely affect TMTG’s business prospects. This could be a concern, considering Trump is currently facing criminal charges across multiple states, which could limit his internet access and social media presence in the future.
Elon Musk’s X, formerly known as Twitter, reinstated Trump’s account last November after a nearly two-year ban from the platform. The filing also stated that Trump has verbally affirmed that he will continue to honor the agreement his company made with DWAC until the merger is complete.
The launch of Truth Social came as a response to Trump being banned from major platforms like Twitter and Facebook following the Jan 6, 2021 attack on Capitol Hill, after which Trump and his administration spread misinformation about the 2020 election results. Trump aimed to position Truth Social as a competitor to tech giants like Meta’s Facebook and X.
With financial challenges looming and Trump’s uncertain legal battles, the future of Truth Social remains uncertain. It remains to be seen what steps TMTG will take to address its financial challenges and ensure the platform’s survival in a competitive social media landscape.
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