Is Trump's Truth Social a failing project?

Truth Social

At the end of 2021, Donald Trump introduced Truth Social as a new social media option after being banned from Twitter (now X) and Facebook.

Aiming high

The platform, created by the former president through Trump Media & Technology Group (TMTG), was expected to compete with large established social media networks.

A bottomless pit

According to Reuters, Truth Social has lost $31.6 million of Trump's money two years after its release.

Photo: Web Truth Social

Digital World Acquisition Corp

The new agency cited a securities filing by Digital World Acquisition Corp, the special-purpose acquisition company planning to merge with Truth Social.

2022

According to Reuters, the filing details that Truth Social posted a profit of $50.5 million in 2022, with net sales of only $1.4 million.

2023

Still, they lost $23 million in the first half of 2023, with net sales of $2.3 million. The rest of the year is still uncertain for the company.

Bleak future

The Digital World Acquisition Corp filing said that Truth Social's parent company believes raising additional funds through traditional sources will be difficult if the merger does not occur.

Layoffs that didn't help

Growth capacity was diminished in March 2023, when those responsible for Truth Social eliminated several jobs, significantly affecting the social network's performance, especially streaming video on demand.

Unattainable expectations

Thus, the company that would "take on the big technology companies," as Donald Trump predicted in October 2021, is closer to bankruptcy than it is to its goal of competing with Facebook or Twitter.

Potential risk

According to a Forbes analysis, the former president constitutes one of many potential risks for Truth Social's parent company.

Liability

Forbes details that the filing explains that the company's success is profoundly linked to Trump's "reputation and popularity," if his popularity suffers, so will the company.

Loss of assets

The financial magazine also pointed out the firm's intense value loss. Truth Social's parent company is now worth between $5 and $25 million. It was evaluated at $875 million when the potential Digital World Acquisition Corp merger was announced.