Barry Diller calls Trump media a ‘fraud’ and people who buy stocks ‘fools’

IAC Chairman Barry Diller had some harsh words for Trump Media and its shareholders.Mike Black/Reuters

  • Barry Diller believes shareholders who own Truth Social were defrauded.

  • The IAC president pointed to Trump Media’s low pay and said he doubted Truth Social would grow.

  • Shares of Trump Media and Technology Group initially soared after the listing, but have since fallen.

Barry Diller has a message for Trump Media shareholders: ‘I think they’re crazy.’

Trump Media and Technology Group, owner of the Truth Social app, enjoys Debut When it went public last week, it attracted interest from retail investors and the “meme stock” crowd.

But that sunny moment was short-lived, and the former president’s social media platform’s stock has never been better. fall to earth.

When Diller, the media mogul and chairman of IAC and Expedia Group, was asked about the future of the stock in a recent interview, he didn’t sound very optimistic about the stock’s future, and he didn’t understand why people were so concerned about it in the first place. excited.

“Why are you talking about this? This is a scam,” Diller said in a statement. interview Thursday on CNBC’s Squawk Box.

According to Monday’s SEC filing, TMTG’s total revenue in 2023 will be just $4.1 million – Also lost $58 millionDiller advises that these numbers should not signal a “buy” to any rational investor.

“It’s ridiculous,” he said. “The company has no revenue.”

Questioning how anyone could consider Trump Media a valuable company, Diller concluded that its shareholders must not have considered financial soundness when purchasing shares. “They buy stocks for other reasons,” he said, calling them “fools.”

Diller likened the surge among Truth Social’s owners to the mania surrounding Gamestop and other “meme stocks.”

Diller said the platform offers little opportunity for future growth.

“Why is it bigger?” he asked, adding that Donald Trump – a major part of the platform’s appeal – is “only interesting now” because he is “out there entertaining people” on the campaign trail.

TMTG did not respond to a request for comment before publication.

Truth Social first tour Briefly inflated Trump’s net worth His fortune is estimated at $7.8 billion, making him richer than George Soros. But just days later, that number plummeted to $6.4 billion. Bloomberg Billionaires Index on Friday.

Meanwhile, short sellers are already betting against the company, the New York Times said reportciting data from S3 Partners.

Trump may also find it difficult to obtain substantial benefits from Trump Media in the short term, because as part of the “lockup period,” he is not allowed to sell his stock for the next six months – unless the company’s board of directors allows otherwise.

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