Trump Media & Technology Group (TMTG) announced it may spin off its Truth Social social media platform into a separate, publicly traded company after completing a $6 billion merger with fusion energy firm TAE Technologies.
What we’re watching: If approved, existing TMTG shareholders would receive stock in the newly separated company.
- Truth Social would then merge with Texas Ventures III, a special purpose acquisition company (SPAC) created in 2024 to acquire or merge with other businesses.
Driving the news: Former President Donald Trump, owning 52% of TMTG shares and with 11.8 million subscribers on Truth Social, is regarded as the platform’s biggest asset.
- Launched in 2021 to target conservatives, Truth Social has struggled with ads, recording a 4% revenue drop in the quarter ending September 30, 2023.
- Over the last year, TMTG diversified into financial services, launched investment funds, and purchased $2 billion in bitcoin to create a cryptocurrency reserve.
Flashback: In December, TMTG announced its merger with TAE Technologies to support powering artificial intelligence data centers with advanced energy technologies.
State of play: TMTG emphasized that it is only considering the Truth Social spinoff and is still in discussions, without providing a specific timeline or decision date.
- TMTG’s stock (ticker symbol “DJT”) has declined about 18% this year, though it rose less than 1% to $11.02 in early trading the day of the announcement.
