Former President Trump’s social media platform, Truth Social, has lost $73 million in net sales since the platform’s official launch in February 2022, according to a new financial disclosure filing from Digital World Acquisition Corp. (DWAC).
Digital World is a merger partner with Trump Media & Technology Group (TMTG). Trump owns a stake in Truth Social that was last valued at between $5 million and $25 million.
The form shows that Truth Social lost $50 million on just $1.4 million of net sales in 2022 and another $23 million within the first six months of this year, according to the filing, which was first reported by The Hollywood Reporter.
If TMTG is unable to complete its merger with DWAC and receive more funds, the company may not survive, according to the filing.
The amended S-4 filing noted in a section titled “Risks Related to TMTG” that “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.”
It also outlines that its fortunes are closely tied to that of Trump, saying, “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.”
Internet access and a regular presence on social media are strictly limited when in police custody or during a prison sentence, and Trump is currently facing a slew of criminal charges across multiple states.
X, the platform formerly known as twitter that is now under the helm of Tesla CEO Elon Musk, reinstated Trump’s account last November after a nearly two-year ban from the platform.
Trump, who is facing a slew of legal battles while campaigning to serve a second term as president, “verbally affirmed” on Oct. 30 that he will continue to honor the agreement his company made with DWAC until the merger is complete, The Hollywood Reporter reported.
The filing also states that there is concern from TMTG management that it will have sufficient funds “to meet its liabilities as they fall due” and concluded that it will be “difficult to to raise additional funds through traditional financing sources in the absence of material progress toward completing its merger with Digital World.”
Trump officially launched the social media platform in February 2022, aiming to become a competitor to other tech heavyweights such as Meta’s Facebook and X.
Trump and partners debuted Truth Social after the former president was banned from Twitter and Facebook a day after the Jan 6., 2021, attack at the Capitol, when a mob of his supporters stormed the building in an effort to stop the certification of the 2020 election results.
Before his suspension, Trump and officials in his administration spread a barrage of untrue misinformation about the 2020 election results across his social media platforms.
Copyright 2023 Nexstar Media Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.