Truth Social Financial Odyssey: In a recent securities filing, Digital World Acquisition Corp (DWAC.O), the SPAC set to merge with Donald Trump’s Truth Social, revealed a staggering $73 million loss since the platform’s launch in early 2022. Trump, aiming to challenge Big Tech giants like Twitter and Facebook, had unveiled Truth Social in October 2021, promising to stand up to the industry titans.
However, 2022 brought financial woes, as Truth Social reported a $50 million loss with meager net sales of $1.4 million. The first half of this year saw an additional $23 million loss, coupled with net sales of $2.3 million.
The filing also highlighted concerns about Truth Social’s financial future, with Trump Media & Technology Group‘s accounting firm expressing doubt about its ability to continue as a going concern. TMTG acknowledged the difficulty of securing additional funds through traditional channels, emphasizing the importance of making substantial progress on the merger with Digital World.
March brought further challenges as the company streamlined its operations, cutting several positions in a strategic move. The filing indicated that this restructuring primarily impacted TMTG’s streaming video on demand and infrastructure teams. As Truth Social navigates these financial headwinds, questions arise about its resilience and ability to fulfill Trump’s vision of a formidable player in the social media landscape.
Also Read: Trump Social Media Odyssey: SPACs Jaw-Dropping $533 Million Refund Revealed
Our Reader’s Queries
Did Truth Social lose $73 m?
We apologize for the error in our earlier version, which incorrectly stated that Truth Social had incurred a loss of $73m since its launch. The actual figure, as recorded in the SEC filing, is $31.6m. Additionally, we have updated the article to reflect that Truth Social actually posted a profit of $50.5m in 2022, rather than the previously stated loss of $50m. We regret any confusion this may have caused and strive to provide accurate information to our readers.
Who owns T Media Tech LLC?
As of April 2023, Trump held a whopping 90% ownership stake in the company. Meanwhile, since January 2022, the company has been under the leadership of former U.S. representative Devin Nunes, who serves as its chief executive officer.