Former President Donald Trump’s social media company Truth Social has reportedly lost $73 million in net sales since it launched nearly two years ago, a new financial disclosure shared.
The filing comes from Digital World Acquisition Corp, which is in the process of merging with Trump Media & Technology Group.
The former president’s stake in Truth Social was last valued between $5 million and $25 million, according to the Hollywood Reporter.
According to the filing, Truth Social lost $50 million on just $1.4 million of net sales in 2022 and another $23 million in the first six months of this year.
The filing says that if the merger between DWAC and TMTG isn’t completed, then the company may not survive as it requires more funds.
In the filing, it says that if the former president were to quit using the platform, it could also go belly up.
“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,” the filing says.
With Trump facing several legal challenges, which could see him placed behind bars, the former president would not be able to dedicate time and energy to social media, as it would be restricted while he is in custody.
The filing says that TMTG management has concerns about meeting its “liabilities as they fall due,” with current funding potentially falling short, adding that it would be “difficult to raise additional funds through traditional financing sources in the absence of material progress toward completing its merger with Digital World.”
“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 filing said.
Trump has been on Truth Social since February 2022, launching the platform to rival Facebook and X after he was banned from the websites following the events of Jan. 6, 2021. He has since been reinstated on X.
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