Donald Trump’s social media platform Truth Social has lost $31.6 million from its launch in early 2022 to mid-2023, a new securities filing has revealed.
The former US President announced the launch of the app in October 2021, saying it would “stand up” to established tech giants Facebook and Twitter (now X).
However, a filing from Digital World Acquisition Corp (DWAC), which plans to merge with the company, show that in the first half of 2023 it has lost $23m while bringing in only $2.3m in net sales.
This has raised doubts about the viability of the company and its social media startup, according to the filing.
“TMTG’s independent registered public accounting firm has indicated that TMTG’s financial condition raises substantial doubt as to its ability to continue as a going concern,” the company noted in the filing.
The filing said DWAC has "until 8 September 2024 to consummate a business combination".
It raised concerns that both TMTG and DWAC may not survive unless this merger is completed.
“It is uncertain that Digital World will be able to consummate a business combination by this time. If a business combination is not consummated by this date, there will be a mandatory liquidation and subsequent dissolution of Digital World,” the filing said.
“TMTG believes that it may be difficult to raise additional funds through traditional financing sources in the absence of material progress toward completing its merger with Digital World,” the filing further said.
“A number of companies that had licence agreements with President Trump have failed. There can be no assurances that TMTG will not also fail,” the filing said.
