While Donald Trump‘s Truth Social may be his soap box of preference, a filing shows that since its launch in 2022, the social media platform brought in $3.7 million in net sales while suffering a loss of $73 million.
The Hollywood Reporter notes that this is the first time internal financial details from within the company, which is owned by rump Media & Technology Group (TMTG), have been shared publicly. A new financial disclosure from TMTG’s SPAC merger partner Digital World Acquisition Corp. revealed that in 2022, Truth Social took $1.4 million in net sales, but lost $50 million; during the first six months of this year, the company made $2.3 million, but lost $23 million.
According to the filing, TMTG’s financial situation is such that its “independent registered public accounting firm has indicated that TMTG’s financial condition raises substantial doubt as to its ability to continue as a going concern.” Per THR, the document also states that if TMTG does not complete the merger with DWAC, it may be forced to close shop.
A number of risk factors related to TMTG were also detailed in the amended S-4 filing, including the mention of layoffs in regards to the Truth Social’s streaming video service. “On March 1, 2023, TMTG eliminated several positions,” the filing stated. “This action followed a review of all departments, most significantly impact(ing) TMTG’s streaming video on demand (SVOD) and infrastructure teams.”
When Trump founded TMTG, he agreed to a “social media exclusivity term” that required him to “first channel any and all social media communications” to his Truth Social account for six hours prior to posting the content to other platforms, according to SEC filings.
In August 2022, Fox Business reported that Truth Social owed more than $1 million to RightForge, the service that hosts the app on the web. And in January, Rolling Stone reported that the ex-president informed several people close to him that he did not want to renew the exclusivity agreement with Truth Social, his own company.
On Oct. 30, Trump “verbally affirmed” that he will honor that agreement at least until the merger is complete, according to the new filing.
Source link: https://www.rollingstone.com/politics/politics-news/donald-trump-truth-social-lost-73-million-dollars-1234877028/