Truth Social Starts Returning Money To Investors Which Is A Bad Thing If You’re Truth Social

It appears that Donald Trump’s failing social media platform may be closer to death’s door than ever before. I say that because Newsweek is reporting that the company behind Truth Social is returning money to investors:

A proposed merger with the company that owns Donald Trump‘s social media app, Truth Social has hit a major snag as the founding partner announced it would be returning hundreds of millions of dollars back to investors.

Digital World Acquisition Corp (DWAC), a special-purpose acquisition company that aims to raise funds to merge with a private company, said it would return $533 million raised for the deal with Trump Media & Technology Group (TMTG) having already received termination notices on $467 million work of commitments.

This is bad because this cash was meant to finance the merger between DWAC and TMC. Now DWAC has less cash to do that. And keep in mind that they have tried to make this happen for a long time now. In fact, they recently had to extend the timeline for the merger for another year. But that isn’t likely to happen because of two key facts:

  • According to articles like this one, Truth Social has 2 million active users which pales in comparison to Facebook, Instagram, Mastodon, and Twitter. Though one of those users is the campaign of President Joe Biden.
  • According to an SEC filing the company lost $6 million in the first half of 2022 and didn’t generate any revenue. They do however hold $293 million in a trust that houses most of its assets. But still, that’s not a good look.

The fact is with a tiny user base and no real income, and no real prospect to grow either, Truth Social is dying a slow death. And this latest development isn’t going to slow that death in any way.

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