New York, Nov 14 (EFE).- The parent company of Truth Social, the social network created by former US President Donald Trump, has lost $ 73 million (67 million euros) since its inception in early 2022, according to a document filed Tuesday with the US stock market regulator ahead of a merger.
Trump Media and Technology Group (TMTG) lost about $ 50 million in 2022 and another $ 23 million through July this year, according to Digital World Acquisition Corporation (DWAC) documents for the US Securities and Exchange Commission (SEC).
DWAC is a so-called “blank check” company (special purpose acquisition company) whose sole purpose is to go public and then buy or merge with another company and take it public.
TMTG and DWAC announced their merger at the end of 2021, but it has yet to happen.
This merger would give TMTG an infusion of cash that seems necessary for the survival of Truth Social, which Trump launched in February 2022 after being banned from the mainstream social networks for encouraging his supporters to attack Capitol Hill.
In fact, Tuesday’s filing notes that “TMTG’s financial condition raises substantial doubt as to its ability to continue.”
Truth Social’s poor performance was the primary cause of Trump’s fall in October from the Forbes 400 list of the richest Americans, which coincided with the start of the civil trial against him for fraud at the Trump Organization, which will last until December.
Forbes estimated the businessman’s fortune at $2.6 billion, $600 million less than in 2022, and said that TMTG, of which he is the majority owner, had fallen from an estimated value of $730 million to less than $100 million. EFE nqs/ics