The parent company of Truth Social, the social networking site founded by former President Donald Trump, reported a significant loss of $400.9 million in the previous year. This news comes alongside a 12% decline in annual revenue, which now stands at $3.6 million. Trump Media & Technology Group, the company behind Truth Social, attributed these losses partly to a revenue-sharing agreement with an undisclosed advertising partner.
Following his victory in the U.S. presidential election, Trump made a notable move by transferring all his shares in the company, valued at approximately $4 billion, to the Donald J. Trump Revocable Trust as a gift. This transfer represented more than half of the company's total stock. The trust is overseen by Donald Trump Jr., the eldest son of the former president, who holds full control over voting and investment decisions related to the trust's securities.
Truth Social was launched by Trump in response to his ban from major social media platforms like Twitter and Facebook following the events of the Jan. 6, 2021, Capitol riot. The parent company, headquartered in Sarasota, Florida, emphasized that due to its early development stage, it does not disclose conventional key performance indicators typically shared by other social media companies, such as user sign-ups, daily or monthly active users, or ad impressions.
In March of last year, Trump Media went public through a merger with Digital World Acquisition Corp., a shell company known as a special purpose acquisition company (SPAC). This strategic move allowed the company to expedite the process of trading its shares publicly, providing a faster route to market for emerging businesses.
