Truth Social faces financial peril as worry about Trump's future grows

[LetMyPeopleVote]

TFG's new media company is called Trump Media & Technology was supposed to have merged with a special purpose acquisition company by now. Following such merger, TFG's medial company would have had between $780 million and $1 billion in assets for TFG to play with. Both the SEC and the DOJ are investigating this transaction and now it looks like this transaction may never close or will only close after a substantial delay.

TFG did not put any real capital in TM&T and so it is not surprising that this company cannot pay its bills

Link to tweet

https://www.washingtonpost.com/technology/2022/08/27/trump-truth-social-mar-a-lago-fbi/?utm_campaign=wp_main&utm_medium=social&utm_source=twitter

Former president Donald Trump’s Truth Social website is facing financial challenges as its traffic remains puny and the company that is scheduled to acquire it expresses fear that his legal troubles could lead to a decline in his popularity.

Six months after its high-profile launch, the site — a clone of Twitter, which banned Trump after Jan. 6, 2021 — still has no guaranteed source of revenue and a questionable path to growth, according to Securities and Exchange Commission filings from Digital World Acquisition, the company planning to take Trump’s start-up, the Trump Media & Technology Group, public.

The company warned this week that its business could be damaged if Trump “becomes less popular or there are further controversies that damage his credibility.” The company has seen its stock price plunge nearly 75 percent since its March peak and reported in a filing last week that it had lost $6.5 million in the first half of the year......

There are signs that the company’s financial base has begun to erode. The Trump company stopped paying RightForge, a conservative web-hosting service, in March and now owes it more than $1 million, according to Fox Business, which first reported the dispute.

The company also has struggled with some basics of corporate operation. The U.S. Patent and Trademark Office this month denied its application to trademark “Truth Social,” citing the “likelihood of confusion” to other similarly named companies, including an app, “VERO — True Social,” first released in 2015.

The SPAC that was supposed to merge with TM&T seems to be worried about this deal.

In fact, Digital World’s filings have been consistently downbeat on the likelihood that Truth Social will be a success. Trump’s company “may never generate any operating revenues or ever achieve profitable operations,” it said in May, and if it is “unsuccessful in addressing [its] risks, its business will most likely fail.”

This deal may join a long list of other TFG business failures.

[mountain grammy]

1. I'm sure he has $$ coming in from somewhere

[OAITW r.2.0]

2. Stiffing his own media company.

When he needs it more then ever. How fucked up is this?

[CJW]

3. Why does ...

Why does Trump keep making those "kissy lips"? Ick!

[BootinUp]

4. Nice bedtime story. nt

[LetMyPeopleVote]

5. POLITICS AUGUST 27, 2022 Trump's Truth Social Is in Trouble

Link to tweet

https://www.motherjones.com/politics/2022/08/trump-truth-social-spac-finances-new-reporting/

New subpoenas served on the firm in June suggest the probe could be expanding. News of the federal scrutiny has contributed to the company’s stock price falling 75 percent since its peak, with reported losses to the tune of $6.5 million.

The Trump company has also stopped paying a key vendor. Fox Business reported this week that Truth Social owes a web-hosting company called RightForge $1 million and has failed to make contractually required payments since March.

Digital World Acquisition’s SEC filings have also sounded a series of warnings about the company’s chances for success. In May, it said Trump’s company “may never generate any operating revenues or ever achieve profitable operations.” The filings have repeatedly warned that the venture is endangered by its reliance on the former president. “If President Trump were to discontinue his relationship with TMTG due to death, disability, or any other reason, or limit his involvement with TMTG due to becoming a candidate for political office, TMTG would be significantly disadvantaged,” they said in May. And as Mother Jones has reported, Truth Social does not even get exclusive access to his content. Trump is not required to use the site to post any content related to politics, which, of course, is most of what he says.

Digital World Acquisition has also repeatedly warned in filings that: “If President Trump becomes less popular or there are further controversies that damage his credibility or the desire of people to use a platform associated with him, and from which he will derive financial benefit, TMTG’s results of operations could be adversely affected.”

It’s fair to say further controversy has occurred. More trouble looms. A business relying on Donald Trump’s credibility is not, let’s say, ideally positioned.

[LetMyPeopleVote]

6. Truth Social is $1.6 million in debt to their internet vendor, and is on the verge of collapse.

Link to tweet

[PJMcK]

7. Ha ha ha ha ha ha

A Trump "business" venture is failing?!

Who could have guessed?

[LetMyPeopleVote]

8. Denial is not just a river in Africa

Link to tweet

[Hermit-The-Prog]

9. Sounds a bit desperate, to me. Con-man may be about to collapse.