- Donald Trump launched Truth Social after he was banned from X/Twitter following the January 6 riots.
- Financial records show the former president’s social network is lost tens of millions this year.
- Unless a merger deal goes ahead, Truth Social’s survival could be under threat.
Donald Trump’s social media platform, Truth Social, has lost tens of millions of dollars this year, according to SEC filings released Monday.
Truth Social posted a net loss of almost $23 million for the first six months of the year, compared with a profit of almost $29 million for the same period in 2022.
The figures were contained in a securities filing made by Digital World Acquisition Corp, the special purpose acquisition company, or “Spac,” that plans to merge with Truth Social owner Trump Media and Technology Group (TMTG).
The merger has been delayed by setbacks and legal challenges from the Department of Justice and the US securities regulator.
Digital World has now asked investors to extend the deadline for the Truth Social deal.
In Monday’s filings, TMTG’s independent accounting firm indicated that negative cash flows and recurring losses meant it had “substantial doubt” over the company’s financial position.
The filings laid out risks facing TMTG: “If Truth Social fails to develop and maintain followers or a sufficient audience, if adverse trends develop in the social media platforms generally, or if President Trump were to cease to be able to devote substantial time to Truth Social, TMTG’s business would be adversely affected.”
However, Devin Nunes, the CEO of TMTG, maintained an optimistic outlook and called the filing a “monumental milestone” toward completing the merger, CNBC reported.
“We look forward to working with the SEC to bring this deal to a close as quickly as possible,” he said.
Trump announced Truth Social after being banned from X, formerly Twitter, and other social media platforms for posts believed to be inciting violence in relation to the Jan. 6 attack on the US Capitol.
At the time, Trump said the platform was created to “stand up to the tyranny of Big Tech.”
Although the former president’s X account has since been reinstated, he’s upheld an exclusivity deal to post first on Truth Social.
However, Truth Social has struggled to attract the same level of interest compared with social media platforms. Trump only has 6.44 million followers on Truth Social as of October, per Forbes. He had more than 88 million followers on Twitter when his account was suspended.