Trump’s Truth Social has lost $73 million in less than 2 years, new filing says

Former President Trump’s social media platform, Reality Social, has misplaced $73 million in web gross sales because the platform’s official launch in February 2022, in keeping with a brand new monetary disclosure submitting from Digital World Acquisition Corp. (DWAC).

Digital World is a merger associate with Trump Media & Expertise Group (TMTG). Trump owns a stake in Reality Social that was final valued at between $5 million and $25 million.

The shape reveals that Reality Social misplaced $50 million on simply $1.4 million of web gross sales in 2022 and one other $23 million inside the first six months of this 12 months, in keeping with the submitting, which was first reported by The Hollywood Reporter.

If TMTG is unable to finish its merger with DWAC and obtain extra funds, the corporate could not survive, in keeping with the submitting. 

The amended S-4 submitting famous in a piece titled “Dangers Associated to TMTG” that “TMTG’s unbiased registered public accounting agency has indicated that TMTG’s monetary situation raises substantial doubt as to its means to proceed as a going concern.” 

It additionally outlines that its fortunes are carefully tied to that of Trump, saying, “If Reality Social fails to develop and keep followers or a ample viewers, if antagonistic traits develop within the social media platforms usually, or if President Trump had been to stop to have the ability to commit substantial time to Reality Social, TMTG’s enterprise could be adversely affected.”

Web entry and an everyday presence on social media are strictly restricted when in police custody or throughout a jail sentence, and Trump is presently dealing with a slew of prison costs throughout a number of states.

X, the platform previously often known as twitter that’s now underneath the helm of Tesla CEO Elon Musk, reinstated Trump’s account final November after a virtually two-year ban from the platform. 

Trump, who’s dealing with a slew of authorized battles whereas campaigning to serve a second time period as president, “verbally affirmed” on Oct. 30 that he’ll proceed to honor the settlement his firm made with DWAC till the merger is full, The Hollywood Reporter reported. 

The submitting additionally states that there’s concern from TMTG administration that it’s going to have ample funds “to satisfy its liabilities as they fall due” and concluded that it will likely be “troublesome to to lift further funds by means of conventional financing sources within the absence of fabric progress towards finishing its merger with Digital World.”

Trump formally launched the social media platform in February 2022, aiming to turn out to be a competitor to different tech heavyweights equivalent to Meta’s Fb and X.

Trump and companions debuted Reality Social after the previous president was banned from Twitter and Fb a day after the Jan 6., 2021, assault on the Capitol, when a mob of his supporters stormed the constructing in an effort to cease the certification of the 2020 election outcomes.

Earlier than his suspension, Trump and officers in his administration unfold a barrage of unfaithful misinformation concerning the 2020 election outcomes throughout his social media platforms.