Truth Social, former President Donald Trump’s venture into the competitive social media landscape, continues to face financial difficulties, and, according to several reports, the platform’s losses have amounted to $73 million in just one year since its launch in early 2022.
This raises questions about its viability, Reuters reports.
Trump's Truth Social reports $73 mln net loss since launch https://t.co/W0Y4KXyc06 pic.twitter.com/iXgelwrPEu
— Reuters (@Reuters) November 14, 2023
The financial difficulties facing Truth Social are revealed in financial reports recently published by Digital World Acquisition Corp. According to this information, the platform achieved net sales of $1.4 million in its first year, but only $2.3 million in the first six months of 2023. The platform also suffered a loss of $50 million in 2022 and a loss of $23 million in the first half of 2023.
These figures certainly cast a shadow over the financial stability of Trump Media & Technology Group, Truth Social’s parent company.
Indeed, questions have been raised about Trump Media & Technology Group’s future as a company.
In these circumstances, the disclosure of former Congressman Devin Nunes’ salary as CEO of Trump Media & Technology Group also shocked many… he reportedly received $750,000 in 2022!
The Special Purpose Acquisition Compagny merger was originally scheduled for completion in 2021. However, delays, legal complications and doubts on the part of several investors have marred the process ever since.
These financial disclosures add a hint of concern that Trump Media & Technology Group could face difficulties if it does not make significant progress in completing its merger with Digital World Acquisition Corp.
Trump estimated the value of Trump Media & Technology Group at between $5 million and $25 million when he reported it to the Federal Election Commission earlier this year. This is a dramatic drop from the $875 million valuation achieved when Special Purpose Acquisition Compagny and Digital World Acquisition Corp. merged.
Digital World Acquisition Corp. recently revealed that it had lost a planned investment of $191.5 million!
Digital World Acquisition Corp. also revealed the need to correct financial statements up to 2022, as these were no longer reliable due to an error in accounting for certain expenses. The company’s shares plummeted as the merger proposal dragged on, as evidenced by the drop in market capitalization from nearly $4 billion to $545 million in March 2022.
In addition to all these financial problems, Trump Media & Technology Group’s success is said to be directly linked to the public’s perception of Trump. Trump Media & Technology Group acknowledged that its future could be threatened if Trump’s popularity or reputation declined, in addition to the potential negative effects of Trump’s ongoing lawsuits.
