Truth Social
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Truth Social faces financial peril as worry about Trump’s future grows
Former president Donald Trump’s Truth Social website is facing financial challenges as its traffic remains puny and the company that is scheduled to acquire it expresses fear that his legal troubles could lead to a decline in his popularity.
Six months after its high-profile launch, the site — a clone of Twitter, which banned Trump after Jan. 6, 2021 — still has no guaranteed source of revenue and a questionable path to growth, according to Securities and Exchange Commission filings from Digital World Acquisition, the company planning to take Trump’s start-up, the Trump Media & Technology Group, public.
The company warned this week that its business could be damaged if Trump “becomes less popular or there are further controversies that damage his credibility.” The company has seen its stock price plunge nearly 75 percent since its March peak and reported in a filing last week that it had lost $6.5 million in the first half of the year.
There are signs that the company’s financial base has begun to erode. The Trump company stopped paying RightForge, a conservative web-hosting service, in March and now owes it more than $1 million, according to Fox Business, which first reported the dispute.
The company also has struggled with some basics of corporate operation. The U.S. Patent and Trademark Office this month denied its application to trademark “Truth Social,” citing the “likelihood of confusion” to other similarly named companies, including an app, “VERO — True Social,” first released in 2015.
Representatives from Trump’s company and Digital World did not respond to requests for comment.
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DWAC, the blank-check company set to take Trump Media and Technology Group public, changed its address to a Miami UPS Store in a filing Friday [2022 Sep. 23].
As of Friday, DWAC had lost $138.5 million of its $1 billion in private financing.
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@Axtremus said in Truth Social:
DWAC, the blank-check company set to take Trump Media and Technology Group public, changed its address to a Miami UPS Store in a filing Friday
Dont know why, but this made me laugh.
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Patrick Orlando, the CEO of Digital World Acquisition Corp. urged Donald Trump to publicize a shareholder vote on delaying the merger with Trump Media and Technology Group.
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"@realDonaldTrump @DevinNunes let's get the vote awareness up," the Digital World Acquisition Corp. chief wrote in a Truth Social post that attached information about the shareholder vote.
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@Horace said in Truth Social:
The free market is working.
I wonder at what point Mr. Trump will start referring to it as 'Failing Truth Social'.
Proud supporter of Plan 2525. Everything you think, do and say will be in the pill you took today.
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@Doctor-Phibes said in Truth Social:
I wonder at what point Mr. Trump will start referring to it as 'Failing Truth Social'.
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https://www.cnbc.com/2024/02/29/trump-media-sued-over-dwac-merger-share-dilution.html
- Former President Donald Trump was accused in a lawsuit of trying to “drastically dilute” the value of stock shares in his social media company.
- United Atlantic Ventures alleges that Trump Media & Technology Group engaged in “wrongful 11th hour … maneuvering” to dilute UAV’s minority stake in the media company.
- The Delaware Chancery Court lawsuit comes in advance of a planned merger of TMTG with a shell company called Digital World Acquisition Corp.
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Important shareholder meeting today to decide the fate of the Digital World and Trump Media merger:
https://www.investors.com/news/dwac-stock-trump-media-merger-vote-donald-trump-needs-cash/
But lawsuits galore:
https://wapo.st/3x6nNrrBut in the lead-up to Friday’s vote, both companies have been rocked by legal warfare. Their leaders, past and present, have traded heated accusations of deception and impropriety across four lawsuits in three states.
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DJT now trading (again):
https://www.cnbc.com/2024/03/26/trump-media-stock-ticker-djt-debuts-after-dwac-merger.html
The ticker debuted on the Nasdaq stock market nearly three decades after the former president used it to launch his publicly traded hotel and casino company to great fanfare in 1995.
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That stock was ignominiously delisted from the New York Stock Exchange nine years later.I suppose this is DJT 2.0.
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By the way you almost have to feel sorry for all the retail buyers out there. Many of them probably bought $400 sneakers only to see them selling for $99 a week later.
As a reminder, Truth Social had less than $4MM of revenue in the first 3 quarters of last year, while blowing through $50MM in expenses that same period.
And now those poor dupes bid the value of the enterprise up to 13B. Someone needs to tell them there are no greater fools to sell it to later.
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@jon-nyc said in Truth Social:
By the way you almost have to feel sorry for all the retail buyers out there. …
As a reminder, Truth Social had less than $4MM of revenue in the first 3 quarters of last year, while blowing through $50MM in expenses that same period.
And now those poor dupes bid the value of the enterprise up to 13B. Someone needs to tell them there are no greater fools to sell it to later.
Yeah, tough call on whether to post about the “DJT” ticker in this thread here or in the “Never Ending Grift” thread.
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@jon-nyc said in Truth Social:
By the way you almost have to feel sorry for all the retail buyers out there. Many of them probably bought $400 sneakers only to see them selling for $99 a week later.
As a reminder, Truth Social had less than $4MM of revenue in the first 3 quarters of last year, while blowing through $50MM in expenses that same period.
And now those poor dupes bid the value of the enterprise up to 13B. Someone needs to tell them there are no greater fools to sell it to later.
If you could have gotten in the first hour, it would have been great.
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DON’T let them eat cake.
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@jon-nyc said in Truth Social:
A heard a remarkable statistic and personally verified it.
Truth Social’s revenues last year were less than half that of the average Cheesecake Factory restaurant.
You should add that the "mildly interesting" forum thread. LOL
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Oops. Hope nobody here put all there money in this stock.
https://abcnews.go.com/US/shares-trumps-truth-social-drop-20-after-company/story?id=108721538
Shares of former President Donald Trump's social media platform dropped more than 20% on Monday after the company disclosed a net loss at the end of last year of more than $58 million.
The decline erased $2 billion in value and, with it, the value of Trump's majority stake of 57%.
Before Trump Media and Technology Group joined forces with a shell company to go public last week, "management had substantial doubt that TMTG will have sufficient funds to meet its liabilities as they fall due," the company said in a regulatory filing.
The company also conceded that "TMTG's success depends in part on the popularity of our brand and the reputation and popularity of President Trump. The value of TMTG's brand may diminish if the popularity of President Trump were to suffer."
