Truth Social Is Bleeding Cash And Likely Doesn’t Have Long To Live

Reuters is reporting that Truth Social, which is Donald Trump’s attempt at running a social network, is bleeding cash like a gunshot victim. How much cash you ask? Have a look at this:

Former U.S. President Donald Trump’s social media platform Truth Social has lost $73 million since its launch in early 2022, a securities filing by Digital World Acquisition Corp, the SPAC that plans to merge with the company, showed on Monday.

Trump had announced the launch of his social media app in Oct 2021, saying it would “stand up to Big Tech” companies such as Twitter and Facebook that previously barred him.

In 2022, Truth Social posted a loss of $50 million, with net sales of just $1.4 million. It lost $23 million in the first half of this year, with net sales of $2.3 million.

Trump Media & Technology Group’s (TMTG) independent registered public accounting firm has indicated that the financial condition raises substantial doubt as to its ability to continue as a going concern, according to the filing.

And what makes this a potentially terminal event for Truth Social is this:

“TMTG believes that it may be difficult to raise additional funds through traditional financing sources in the absence of material progress toward completing its merger with Digital World.”

Here’s why I find this to be absolutely hysterical. Trump swiped code from Mastodon to build Truth Social and got into trouble as a result. Then he had to do some quick tap dancing to make those issues go away. That code cost him $0. But he’s somehow still losing money. I guess it proves that everything that Trump touches dies. Though I have to ask, if when Truth Social joins the pile of failed Trump ventures, will he go back to Twitter? Or will he pop up somewhere else? That will be interesting to see what happens on that front.

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