Trump's Truth Social Faces $73 Million Net Loss Since Launch
Updated: Jan 8
Former U.S. President Donald Trump's social media platform, Truth Social, has reported a net loss of $73 million since its launch in early 2022, as revealed in a securities filing by Digital World Acquisition Corp (DWAC.O), the special purpose acquisition company (SPAC) set to merge with the platform.
Trump had introduced Truth Social in October 2021, positioning it as a competitor to Big Tech companies like Twitter and Facebook that had previously banned him.
In 2022, Truth Social recorded a loss of $50 million, with net sales amounting to just $1.4 million. The platform continued to struggle in the first half of 2023, reporting a loss of $23 million and net sales of $2.3 million.
The independent registered public accounting firm for Trump Media & Technology Group (TMTG) has expressed concerns about the company's financial condition, raising doubts about its ability to sustain operations.
TMTG believes that securing additional funds through traditional financing sources will be challenging without significant progress in completing the merger with Digital World. As a result, the company made the decision to eliminate several positions in March, following a comprehensive review of all departments, particularly impacting TMTG's streaming video on demand and infrastructure teams.
Trump's Truth Social has incurred a net loss of $73 million since its launch.
The platform reported a loss of $50 million in 2022 and $23 million in the first half of 2023.
TMTG's independent accounting firm has expressed doubts about the company's ability to continue as a going concern.