Former President Donald Trump might be approaching another bankruptcy. According to multiple reports, the Republican frontrunner’s social media platform, Truth Social, lost $50 million during the 2022 fiscal year and $23 million in the first half of 2023.
Trump Media & Technology Group (TMTG), which is chaired by the former president, has lost $31.6 million since the company launched in early 2021, SEC filings released Monday showed, wrote CNN.
Truth Social launched in early 2022 as an alternative to Twitter, which is now known as X and is owned by billionaire Elon Musk. At the time, Trump had been banned from what was then Twitter for breaking the platform’s rules on promoting violence during the January 6 riot. His account has since been reinstated.
But Trump’s social media platform has struggled to gain popularity, with its 861,000 monthly active users on iOS and Android as of October amounting to barely 1% of those on X, according to Similarweb.
With cash levels dwindling, Trump Media’s management and accountants are warning there is no guarantee the company will stay afloat.
The filing stated, “TMTG has suffered negative cash flows and recurring losses from operations that raise substantial doubt about its ability to continue as a going concern.”
Former President Donald Trump’s social media site, Truth Social, has lost $73 million since its launch last year, according to a regulatory filing made on Monday that raises concern about the platform’s financial condition and its ability to continue operations. pic.twitter.com/Lp2L79rBIj
— Forbes (@Forbes) November 14, 2023
Trump launched Truth Social after he was initially banned from several mainstream social media sites, such as Twitter and Facebook, after a mob attacked the Capitol on January 6, 2021.
“Given that origin story,” notes CNBC, “Truth Social has branded itself as a safe haven from ‘Big Tech censorship,’ a vision that must be realized for Truth Social to maintain any sort of competitive advantage, according to the filing.
The filing pointed out that the new leadership of X, which was bought by Tesla CEO Elon Musk in Oct. 2022, has put more of an emphasis on free speech, which could heighten competition for Truth Social’s user base and threaten the success of the brand.”
Truth Social’s initial success was largely due to Trump’s involvement, but now the company heavily relies on him. According to the filing, if Trump were to stop dedicating significant time to the platform or if he loses public interest, it could have a significant negative impact on TMTG’s finances.
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He aimed at too narrow a group. Not even all who voted for im signed up for it. It’s too “closed” a bubble. A businessman should’ve foreseen that.