The IPO of his social network Truth Social last week made former US President Donald Trump $4 billion richer in one fell swoop – at least on paper. But now the company lost enormous value.
Because on Monday the company Trump Media & Technology Group (TMTG), which is behind Truth Social, presented its business figures. With a turnover of around four million, TMTG recorded a loss of 58 million dollars (about 54 million euros) last year.
Trump is the largest shareholder
After the publication of the figures on Monday, the share price temporarily fell by more than a fifth. The largest shareholder, Donald Trump, lost more than a billion dollars on paper: the value of his shares fell from almost 4.9 to 3.8 billion. The share is listed on the stock exchange under the abbreviation DJT – based on Trump’s initials. The presidential candidate has a stake of almost 60 percent in the company.
In 2022, Trump’s media company made an annual profit of $50.5 million thanks to a tax credit. The 2023 loss shows that Truth Social is still struggling to attract ad revenue. Even if you could make more here compared to the almost $1.5 million in 2022.
Mandatory warning issued
Given the high losses in ongoing operations, the company warned that it could run out of money. It is a mandatory warning for investors, which is common in the US and is not necessarily followed by bankruptcy.
Source: Krone
I am Wallace Jones, an experienced journalist. I specialize in writing for the world section of Today Times Live. With over a decade of experience, I have developed an eye for detail when it comes to reporting on local and global stories. My passion lies in uncovering the truth through my investigative skills and creating thought-provoking content that resonates with readers worldwide.
