Trump’s social media site, Truth Social, might not last that much longer because the company is broke and bleeding money.
The accountants for Trump Media & Technology Group say the company has “suffered negative cash flows and recurring losses from operations that raise substantial doubt about its ability to continue.”
There’s been a proposed merger with investment partner Digital World Acquisition since October 2021, but that merger has been delayed for months. According to the report, the merger would allow TMTG to access “$300 million Digital World raised from shareholders.”
At this point it looks like the merger is the only way Truth Social survives.
Here’s more from MSN:
Former president Donald Trump’s social network, Truth Social, is facing “substantial doubt” about its future after burning through tens of millions of dollars in operating costs, a new filing shows.
A financial filing Monday by Digital World Acquisition, the investment partner of Trump’s start-up, said the accountants of Trump Media & Technology Group believed the Trump company’s “financial condition” had left it at risk.
In the first six months of the year, Trump Media lost $22.9 million on only $2.3 million in net sales, according to the document, which was filed with the Securities and Exchange Commission.
“TMTG has suffered negative cash flows and recurring losses from operations that raise substantial doubt about its ability to continue as a going concern,” the document said, citing a report from Trump Media’s independent registered public accounting firm.
In the filing, Digital World said that Trump Media’s management believes that the money they expect to raise from a proposed merger would be “sufficient to retire existing debt and to fund existing operations should projected cash flow be insufficient.”
Trump Media chief executive Devin Nunes said in a statement that the filing was a “monumental milestone” toward completing the merger and said Truth Social aspires “to become the centerpiece of a movement, as well as a method for Americans to invest in their freedom.”
Digital World, which announced plans to merge with Trump Media in October 2021, has seen its progress toward the deal delayed for months, preventing Trump Media from tapping the $300 million Digital World raised from shareholders.
The Monday filing said that Trump Media has a number of outstanding promissory notes worth millions of dollars that are scheduled to come due within the next year.
According to the filing, Trump Media’s revenue included $2.3 million in net sales in the first half of this year and $1.4 million last year. For comparison, X, the social network formerly called Twitter, took in more than $2.3 billion in revenue in the first six months of 2022, according to an SEC filing last year.
Maybe they’ll complete this merger and Truth Social will live to fight another day. We’ll see…
There’s a lot more insider baseball in the article which you can read here.