Donald Trump’s media company, Trump Media & Technology Group (TMTG), announced Friday it is exploring a potential spin-off of its social media platform, Truth Social. The move, which would witness Truth Social become a separate, publicly traded company, comes as TMTG prepares to close its merger with fusion power firm TAE Technologies. Shares of TMTG fell more than 2% in trading Friday despite initial gains in premarket hours, reflecting investor reaction to the announcement and the company’s overall financial performance.
The proposed spin-off aims to bring increased public market attention to Truth Social, a platform that has become central to the former president’s communications strategy. Trump has frequently used the platform to make announcements, including previews of federal economic data ahead of its official release earlier this month. The platform has cultivated a dedicated user base, largely comprised of supporters of the former president, and serves as a key channel for his political messaging.
Truth Social’s Path to Independence
According to a press release from TMTG, the spin-off would involve distributing shares of the fresh Truth Social company to existing TMTG stakeholders. The independent Truth Social entity would then merge with Texas Ventures Acquisition III Corp., a special purpose acquisition company (SPAC). This structure is a common method for private companies to become publicly listed without undergoing the traditional initial public offering (IPO) process.
The timing of the potential spin-off is tied to the completion of TMTG’s merger with TAE Technologies, which is expected to occur mid-year. This merger has been a key focus for TMTG as it seeks to secure funding and expand its operations. The company has faced significant financial challenges since its launch, and the merger with TAE Technologies, and now the potential spin-off of Truth Social, represent attempts to stabilize its financial position.
Financial Pressures and Trump’s Stake
The announcement comes amid ongoing scrutiny of TMTG’s financial health. The company’s stock, trading under the ticker DJT, has experienced considerable volatility since its debut. While shares briefly soared after the company went public, they have since fallen significantly, currently trading around $11, a substantial drop from highs above $100 recorded in 2022. Trump has actively encouraged his supporters to invest in and support the platform.
Despite the stock’s performance, Trump has publicly stated he has no plans to sell his majority stake in TMTG. Regulatory filings from late 2024 revealed that Trump transferred all of his shares to a revocable trust for which he is the sole beneficiary. This move allows him to maintain control of the company while potentially mitigating certain financial or legal risks.
A Response to Social Media Bans
Truth Social was launched in February 2022 as a direct response to Donald Trump’s bans from major social media platforms, including Twitter (now X) and Facebook, following the January 6, 2021, attack on the U.S. Capitol. Trump’s removal from these platforms sparked concerns among his supporters about censorship and the suppression of conservative voices. TMTG positioned Truth Social as a champion of “free speech,” aiming to provide an alternative platform for those who felt marginalized by mainstream social media companies.
The platform has attracted a loyal following, but it has also faced criticism for its content moderation policies and the spread of misinformation. According to Wikipedia, as of January 2025, Truth Social had an estimated 6.3 million monthly active users. The platform’s long-term viability remains a subject of debate, particularly given its financial challenges and competition from other social media platforms.
The completion of the merger with TAE Technologies and the potential spin-off of Truth Social represent significant milestones for TMTG. The company’s next major step will be finalizing the merger, a process expected to conclude in the coming months. Investors and observers will be closely watching to see how these developments impact TMTG’s financial performance and its position in the competitive social media landscape.
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