Former President Trump’s social media platform, Truth Social, has suffered a net revenue loss of $73 million since the platform’s official launch in February 2022, according to a new financial disclosure from Digital World Acquisition Corp. (DWAC).
Digital World is a merger partner of Trump Media & Technology Group (TMTG). Trump owns a stake in Truth Social that was most recently valued at between $5 million and $25 million.
The form shows Truth Social lost $50 million in 2022 on net sales of just $1.4 million and another $23 million in the first six months of this year, the filing said, which was first reported by The Hollywood Reporter.
If TMTG is unable to complete the merger with DWAC and obtain additional funding, the company reportedly may not survive.
In the amended S-4 filing, in a section entitled “Risks Related to TMTG,” it states that “TMTG’s independent registered public accounting firm has advised that TMTG’s financial condition raises substantial doubt about its ability to continue as a going concern company arises.”
It also explains that his fate is closely linked to that of Trump: “If Truth Social fails to build and maintain followers or a sufficient audience, if generally negative trends develop on the social media platforms, or if President Trump stops doing this. “If we were to devote much time to Truth Social, TMTG’s business would be affected.”
Internet access and regular social media presence are strictly restricted while in police custody or while serving a prison sentence, and Trump is currently facing a number of criminal charges in several states.
X, the platform formerly known as Twitter that is now under the leadership of Tesla CEO Elon Musk, reinstated Trump’s account last November after a nearly two-year ban from the platform.
Trump, who is facing a series of legal battles as he campaigns for a second term as president, “confirmed” orally on Oct. 30 that he would continue to honor his company’s agreement with DWAC until the merger was completed, The Hollywood Reporter reported .
The filing also states that TMTG’s management is concerned that it will have sufficient funds “to pay its liabilities as they come due,” concluding that it “will be difficult to raise additional funds over traditional ones.” to seek funding sources if no significant progress is made toward completing the merger with Digital World.”
Trump officially launched the social media platform in February 2022 with the aim of becoming a competitor to other tech heavyweights such as Facebook and Meta’s X.
Trump and his partners debuted Truth Social after the former president was banned from Twitter and Facebook a day after the attack on the Capitol on January 6, 2021, when a mob of his supporters stormed the building to prevent the 2020 certification Election results.
Before his suspension, Trump and his administration officials spread a barrage of untrue misinformation about the 2020 election results on his social media platforms.
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