Trump’s Social Media Platform to be Sold for $5.7 Billion
Former US President Donald Trump’s social media app, Truth Social, is set to be sold for approximately $3.3 billion, valuing Trump’s controlling stake in the app. This unexpected windfall could prove crucial for Trump as he faces financial challenges due to a series of lawsuits, including a recent $454 million ruling in a civil fraud case in New York.
On March 22nd, shareholders of Digital World, the company planning to list Trump Media & Technology Group on the stock market through a merger, voted in favor of the deal. The next step is to finalize the agreement next week. However, former CEO of Digital World, Patrick Orlando, and Trump’s former business associates, Andy Litinsky and Wes Moss, have filed lawsuits to claim their share in the deal.
The resolution of these cases is currently uncertain. Therefore, even if the deal is completed next week, Trump will not be allowed to sell any of his shares in the company for six months, based on the terms he agreed to earlier.
The agreement also includes a cash infusion of $300 million for Trump Media & Technology Group, the parent company of Truth Social. The social media company incurred a loss of $10.6 million from its business activities in the first nine months of 2023, with a revenue of $3.4 million. The company self-funded by borrowing $40.7 million through bond issuances.
In February, Digital World reported that Truth Social had garnered 8.9 million registrations so far. Meanwhile, Elon Musk’s social media platform, X, has over half a billion users.
Trump currently has 6.7 million followers on Truth Social, while he has over 87.4 million followers on social media platform X.
According to Reuters