Former President Donald Trump’s Truth Social platform has lost nearly $75 million since it launched in February 2022, according to a Monday Securities and Exchange Commission (SEC) filing.
The company, which Trump founded to be a free speech platform in after Twitter banned him, lost over $50 million in 2022 and about $23 million in the first six months of 2023, according to the filing. Truth Social’s dependence on Trump’s engagement with the platform and competition from other free speech platforms could pose risks to its profitability, the filing asserts.
“If Truth Social fails to develop and maintain followers or a sufficient audience, if adverse trends develop in the social media platforms generally, or if President Trump were to cease to be able to devote substantial time to Truth Social, [Trump Media and Technology Group’s (TMTG)] business would be adversely affected,” it states. “If President Trump fails to retain the public’s interest, or if the customer base were to cease using Truth Social, it could result in a write-down of TMTG’s capitalized development costs.”
Furthermore, billionaire Elon Musk’s ownership of X — formerly Twitter — and its free speech focus also pose a threat to Truth Social’s profitability, according to the SEC filing.
“In addition, there are a number of other social media platforms that focus on the same audience that Truth Social will focus on,” it states. “To the extent users prefer a platform that is not associated with President Trump, our ability to attract users may decrease. Additionally, as a private company under new ownership, X may demonstrate a sustained commitment to free speech principles that will heighten competition for users who prioritize such principles. Failure to attract a sufficient user base would adversely affect TMTG’s business prospects.”
President Joe Biden and Vice President Kamala Harris’ campaign joined Truth Social in October. The campaign had said in May that it would “absolutely not” join the platform, according to Axios.
“I created TRUTH Social and TMTG to stand up to the tyranny of Big Tech. We live in a world where the Taliban has a huge presence on Twitter, yet your favorite American President has been silenced,” Trump asserted in a press release in October 2021. “This is unacceptable.”
Truth Social and TMTG did not immediately respond to the Daily Caller News Foundation’s request for comment.
Jason Cohen on November 14, 2023
