Former U.S. President Donald Trump’s Truth Social, aimed at challenging Big Tech, has faced financial setbacks since its early 2022 launch, reporting a substantial $73 million loss, as revealed in a securities filing by Digital World Acquisition Corp. Trump had introduced the social media app in October 2021, positioning it as a platform that would counter the actions of companies like Twitter and Facebook, which had previously banned him.
In the year 2022, Truth Social experienced a significant loss of $50 million, accompanied by meager net sales of $1.4 million. The financial struggles continued into the first half of 2023, with an additional $23 million loss and net sales reaching only $2.3 million. The filing also disclosed concerns raised by Trump Media & Technology Group’s accounting firm, expressing doubts about the company’s ability to sustain itself as a going concern.
The financial challenges are compounded by the difficulty TMTG anticipates in securing additional funds through traditional financing sources, especially in the absence of substantial progress towards completing its merger with Digital World. Additionally, in a cost-cutting move in March, the company eliminated several positions, with a particular impact on TMTG’s streaming video on demand and infrastructure teams, following a comprehensive departmental review.
