ALBAWABA - Since its launch in February 2022, Donald Trump's social-media venture, Truth Social, has been far from a financial success. Despite being founded by the Trump Media & Technology Group, the platform has faced persistent challenges in attracting users. Even Trump's children rarely engage with the platform to support their indicted father. Despite an initial surge in share prices, recent attempts to go public through a SPAC (Special Purpose Acquisition Company) ended in disappointment.
Trump's business partners had to return over $500 million of the raised funds, and one leading investor in the SPAC effort faced insider trading charges in June.
A regulatory filing this week sheds light on the magnitude of this ongoing debacle. Digital World Acquisition Corp., the blank-check company seeking to merge with Truth Social, revealed a staggering $73 million loss in net sales since the social media platform's launch last year.
The filing highlights a challenging 2023, with a $23 million loss against $2.3 million in sales. Even during the peak publicity around the app last year, Truth Social incurred a $50 million loss on just $1.4 million in net sales.
The filing paints a bleak picture of the app's future. Trump's media company acknowledged that without "material progress" towards making the app public, raising additional funds through traditional financing sources could prove difficult. The company's accountant has expressed "substantial doubt" about its ability to continue as a going concern.
For social-media founders, this could be a bitter pill to swallow. However, Trump's history of failed businesses may provide some preparation if his Twitter clone faces a downfall.
