In an update from New York, the company behind Truth Social, former President Donald Trump’s social media platform, reported a significant financial setback. They ended last year with a staggering loss of $400.9 million, while their annual revenue saw a 12% decline, dipping to $3.6 million.
On Friday, Trump Media & Technology Group shared these figures, attributing part of their financial challenges to a revenue-sharing deal with a yet-to-be-named advertising partner.
Following his presidential victory in November, Trump made headlines again in December when he transferred all his shares, estimated at a worth of about $4 billion, to the Donald J. Trump Revocable Trust as a “bona fide gift.” These shares made up more than half of the company’s total stock.
In a move highlighting family trust, Donald Trump Jr., the eldest of Trump’s five children, holds the role of the sole trustee. He possesses full voting and investment authority over the trust’s securities.
Truth Social came into existence as Trump’s answer to being removed from Twitter and Facebook in the aftermath of the Capitol riot on January 6, 2021.
Due to its initial growth phase, the Sarasota, Florida-based parent company has stated it doesn’t track or report typical performance metrics expected from social media firms. This means figures like sign-ups, daily or monthly active users, or ad impressions are not disclosed.
In an intriguing corporate maneuver, Trump Media ventured into the public trading arena last March by merging with Digital World Acquisition Corp. This was not just a regular merger but involved a special purpose acquisition company (SPAC), which offers a fast track and smoother path for young companies aiming to go public.
