Former U.S. President Donald Trump’s social media platform Truth Social has lost $73 million since its launch in early 2022, a securities filing by Digital World Acquisition (DWAC.O), the SPAC that plans to merge with the company, showed on Monday.
Trump had announced the launch of his social media app in Oct 2021, saying it would “stand up to Big Tech” companies such as Twitter and Facebook that previously barred him.
In 2022, Truth Social posted a loss of $50 million, with net sales of just $1.4 million. It lost $23 million in the first half of this year, with net sales of $2.3 million, Reuters reports.
Trump Media & Technology Group’s (TMTG) independent registered public accounting firm has indicated that the financial condition raises substantial doubt as to its ability to continue as a going concern, according to the filing.
Digital World and TMTG in late September entered into a third amendment to their merger agreement, which stipulated the filing of an amended Form S-4 by Nov. 14 and another round of due diligence. The S-4 was filed yesterday. Digital World can still terminate the merger by Nov. 21 if the transaction does not pass the due diligence sniff test. Read more.
Source: Trump’s Truth Social Reports M Net Loss Since Launch; SPAC Partner Files S-4 Just Under Deadline