Former US president Donald Trump's micro-blogging platform, Truth Social, has reported a net loss of $73 million since its launch in February 2022. The latest filing with the US Securities and Exchange Commission (SEC) reveals a $50 million net loss for the platform in the previous year and an additional $23 million in the first half of 2023.
The filing also highlights that accountants for Trump Media & Technology Group (TMTG), the company behind Truth Social, have expressed "substantial doubt" about the platform's future unless there is support from the long-delayed Special Purpose Acquisition Company (SPAC) merger.
Truth Social was initially rolled out in the first quarter of 2022. The financial challenges underscore the difficulties and competitive landscape faced by new entrants in the social media industry.
“The company prides itself on operating its platform, to the best of its ability, without relying on Big Tech companies. Partnering with pro-free-speech alternative technology firms, TMTG fully launched Truth Social for iOS in April 2022. TMTG debuted the Truth Social web application in May 2022, and the Truth Social Android App became available in the Samsung Galaxy and Google Play stores in October 2022,” according to the filing.
In 2022, Trump Media & Technology Group (TMTG) introduced direct messaging to all versions of Truth Social, followed by the release of a "Groups" feature for users in May 2023. Additionally, in June 2023, the company announced the general availability of Truth Social internationally, marking significant milestones for the social media platform.
Despite challenges, the filing claims substantial growth for Truth Social since its launch. In September, the platform received a lifeline when Digital World Acquisition Corp., a special-purpose acquisition company, agreed to extend a critical deadline for a year. Shareholders of Digital World voted to further extend the merger deadline until September 8, 2024.
If the merger proceeds, Trump Media could access $290 million held by Digital World and an additional $1 billion committed by private investors to the combined company. Until then, Trump's company continues to operate independently, covering expenses such as staff salaries and leases with $36 million raised from earlier sales of promissory notes.
(With Agency Inputs)
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