Former President Donald Trump’s social media platform, Truth Social, may be forced to shut down.
The company’s financial details were revealed in a new financial disclosure from Trump Media & Technology Group [TMTG]SPAC’s merger partner, Digital World Acquisition Corporation.
As a result, it is now known that the company suffered a loss of nearly $23 million in the first half of the year, as revealed in a recent securities filing, raising concerns about the company’s “ability to continue.”
Donald Trump’s Face Of The Truth Social App Is Shut Down In The Face Of His Financial Troubles
Truth Social debuted in February 2022 following Trump’s ban from most social networks after the Capitol riots on January 6, 2021. Although the politician has returned to X, formerly known as Twitter, he maintains that Truth Social is his primary social media platform.
However, despite joining, the 77-year-old’s presence has yet to translate into revenue for the platform’s parent company, Trump Media & Technology Group [TMTG]. The filing, notably the first time any financial details about the social networking site have been made public, revealed that in 2022, Truth Social posted a $50 million loss with just $1.4 million in net sales.
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In the first six months of the current year, the platform generated $2.3 million in revenue but suffered a loss of $23 million. TMTG’s financial condition is uncertain, as indicated by the filing, stating that “TMTG’s independent registered public accounting firm has indicated that TMTG’s financial condition raises substantial doubt about its ability to continue as a going concern.”
The filing also provided an honest assessment of the business, claiming that “as of June 30, 2023 and December 31, 2022, management has substantial doubt that TMTG will have sufficient funds to meet its liabilities as they fall due, including liabilities related to the notes promissory note issued by TMTG before.”
The company further stated that “TMTG believes that it may be difficult to raise additional funds through traditional funding sources in the absence of material progress toward completing its merger with Dunia Digital.”
Because of this, it has been suggested that if TMTG fails to finalize the merger with DWAC and secure the expected funds, its survival may be at risk. While TMTG was initially valued at $875 million when the merger with DWAC was announced, Trump’s latest financial disclosures set his controlling interest at between $5 million and $25 million.
The filing did not provide any information about the service, which was initially teased with offerings of conservative comedy and “Trump-specific programming,” except to mention the layoffs.
“On March 1, 2023, TMTG has eliminated several positions. This action follows a review of all departments, most significantly impacting the streaming video on demand (SVOD) and TMTG infrastructure teams,” the document was filed on Monday, as Hollywood Reporter reported.
‘The Apprentice’ Star Recently Debuts On Forbes List
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The decline of the social app isn’t the only bad news Trump has had to deal with, as The Blast reported last month that he had been removed from Forbes’ highly sought-after list of America’s 400 Richest People. As it turns out, the University of Pennsylvania alum’s estimated net worth has dropped from more than $3.5 billion in 2022 to $2.6 billion in 2023.
While Forbes attributed the decline in Trump’s estimated net worth to a variety of factors, his large investment in Truth Social was a major contributing factor. As shared above, the app has yet to gain traction and interest among active social media users, leading to a significant drop in value.
Additionally, Forbes attributed the decline to the depreciation of some of Trump’s office buildings on the market. This depreciation was driven by a widespread shift toward remote work and an increase in the population leaving major cities, including San Francisco.
This isn’t the first instance of the Mar-a-Lago owner being left off the Forbes 400 list. The earliest was when he shared a spot on the inaugural 1982 list with his father, Fred Trump. Then, when he filed for bankruptcy years later, he dropped off the list again in 1990.
Fans are hoping Trump will make a comeback before it’s too late for Truth Social.
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Source: thtrangdai.edu.vn/en/
