Thursday, November 30, 2023

Donald Trump’s social network has lost 73 million and its future is up in the air

It’s not just legal problems that threaten Donald Trump. Social Truth has lost so much money that it has put it in a dangerous “financial situation” that raises “great doubt” about its viability, according to a report on accounts presented on Monday.

Since its launch in early 2022, the company Trump Media & Technology Group (TMTG), whose main business is that of social media, has lost a total of 73 million dollars. Last year, the losses were 50 million dollars, and within the first six months of 2023, they had collected another 23 million in red, as stated before the Securities and Exchange Commission. The income from these times reached 2.3 million in 2022 and 1.4 million in the first half of this year.

“TMTG has been suffering from negative cash flows and recurring losses from operations that raise significant doubts about its ability to continue as a going concern,” the report said, which discusses a study of an independent public accounting firm.

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Merging the road

The financial document revealing this information was presented by Digital World Acquisition Corp., which since 2021 has been studying the possibility of merging the company with the former president of Deer. This hypothetical merger is paralyzed by the difficulty of “raising additional funds through the traditional sources of financing.”.

The leadership of Truth Social, led by former Republican congressman Devin Nunes, believes that the money they will collect from that business operation will be “sufficient to retire the current debt and to finance the current operations in the event that the projected cash flow is insufficient.”

Failed alternative

On February 21, 2022, the Republican leader launched this new market platform to “take on big tech companies” like Facebook or Twitter. His account was blocked for inciting a mob of followers to storm the Capitol in Washington, an undemocratic insurrection that caused more than five deaths.

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The appearance and operation are similar to today. Ruth Social has become a digital haven for conservatives and members of the ‘alt-right’, the very right US. Trump has used it to continue spreading false conspiracy theories, such as one pointing to a rigged 2020 presidential election in which he was defeated by the current president. Joe Biden.

In 2021, Truth Social plans to have 41 million total users, but two years ago, the platform’s mobile app had 500,000 active users per month, according to data from the company Similarweb compiled by ‘The Washington Post’. Last year, its web traffic fell by 24%.

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Back to Twitter?

Since then, Trump has posted almost exclusively on Truth Social. He wants to promote its use to try to make money. However, this is a very small megaphone compared to the old Twitter. In the first, 6.4 million people followed, while in the second, they gathered more than 87 million.

Trump’s economic interests are at odds with his political goals. Within a year, deer held presidential elections again, which opened the door to the return of the magnate’s white house. Twitter was central to his first campaign and throughout his tenure. Although he claims that he turned his back on her last August—after Elon Musk reactivated his account—publishing his first message after a two-and-a-half-year absence This is to ask for money for his campaign.

Nation World News Desk
Nation World News Desk
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