“Reports of Enormous Losses for Media Giant in the Year 2020”
In a recent announcement, the parent company overseeing President Donald Trump’s social media platform, Truth Social, disclosed a staggering loss of $400.9 million for the past year, coupled with a notable 12% decrease in annual revenue, down to $3.6 million. Trump Media & Technology Group revealed these financial figures in a late Friday report, attributing the substantial losses partially to a revenue-sharing agreement with an undisclosed advertising collaborator.
Following his victory in the U.S. presidential elections, Trump made a significant move in December by gifting all his shares, valued at around $4 billion, to the Donald J. Trump Revocable Trust. These shares constituted more than fifty percent of the company’s total stock. As the eldest of the president’s five children, Donald Trump Jr. serves as the sole trustee of the trust, possessing exclusive voting and investment authority over all securities owned by the trust.
Truth Social was established by Trump subsequent to his removal from platforms like Twitter and Facebook in the aftermath of the Capitol riot on January 6, 2021. The parent company, headquartered in Sarasota, Florida, clarified that due to being in an “early development stage,” it does not provide certain “traditional key performance indicators” commonly disclosed by other social media entities, such as user sign-ups, daily or monthly usage metrics, or ad visibility.
Trump Media transitioned to a publicly traded entity last March following a merger with a shell company known as Digital World Acquisition Corp. This strategic move exemplifies a special purpose acquisition company (SPAC), offering fledgling companies expedited and simpler paths to having their shares publicly traded.
