Donald Trump’s social-media platform, Truth Social, has lost $73 million since its launch nearly two years ago, according to a regulatory filing Monday, raising doubts about its viability.
An SEC filing by Digital World Acquisition Corp.
the blank-check company that is in the process of acquiring Truth Social parent Trump Media & Technology Group, disclosed for the first time details of the company’s finances.
Truth Social lost $50 million in 2022, and another $23 million through the first six months of this year, according to the filing. It had net sales of just $1.4 million in 2022, and $2.3 million in the first half of 2023.
The Hollywood Reporter first reported the disclosure.
According to the lengthy filing, TMTG’s independent accountants have warned that the company’s financial situation “raises substantial doubt as to its ability to continue as a going concern,” and that “management has substantial doubt that TMTG will have sufficient funds to meet its liabilities as they fall due” if the merger is not completed.
Trump’s fate looms large over the company’s future, with DWAC noting his multiple legal proceedings among roughly 80 pages of risk factors, and saying the company could be adversely affected if he is convicted or incarcerated. The filing also noted that a number of companies associated with Trump filed for bankruptcy or failed in the past, and said “there can be no assurances that TMTG” will not suffer the same fate.
Truth Social launched in February 2022, touting itself as a “pro-free-speech” alternative to platforms like Twitter and Facebook.
The DWAC-TMTG merger plans were announced in 2021, and in September, the deadline to complete the deal was extended for another year, amid negotiations for a $300 million cash infusion to Trump’s company.
In July, DWAC reached a settlement with the Securities and Exchange Commission over fraud charges that it misled investors about the deal. Last month, DWAC said it would restate its 2021 financial results after the company’s audit committee found accounting errors from that year.
DWAC shares are up slightly year to date, but have fallen about 45% over the past 12 months.