(Reuters) – Truth Social, the social media platform of former U.S. President Donald Trump, has been operating since early 2022, according to a securities filing on Monday by Digital World Acquisition Corp, the SPAC planning to merge with the company. It has lost $73 million since launch.
Trump announced the launch of his social media app in October 2021, saying it would “combat big tech companies like Twitter and Facebook that had previously banned him.”
In 2022, Truth Social suffered a loss of US$50 million and net sales of only US$1.4 million; in the first half of this year, it suffered a loss of US$23 million and net sales of US$2.3 million.
The independent registered public accounting firm of Trump Media & Technology Group (TMTG) said its financial condition casts significant doubt on its ability to continue as a going concern, according to documents.
“TMTG believes that in the absence of substantial progress towards completing the merger with Digital World, it may be difficult to raise additional capital through traditional financing channels.”
The company also eliminated multiple positions in March, the filing said, adding that the action followed a review of all departments, with the most significant impact on TMTG’s streaming video on demand and infrastructure teams. .
(Reporting by Maria Ponnezhath in Bengaluru; Editing by Nivedita Bhattacharjee)