Media attempts to downplay Trump's increase in net worth by highlighting Truth Social's financial losses

 April 2, 2024

Former President Donald Trump's net worth reportedly more than doubled overnight last week when the parent company of his Truth Social app, Trump Media & Technology Group, successfully merged with the special purpose acquisition company Digital World Acquisition Corp. and began to be publicly traded on the NASDAQ stock exchange market.

The media's thinly veiled fury over that lucrative development for Trump is matched only by its apparent glee over new reports that Truth Social lost more than $58 million in 2023 and earned only around $4.1 million in revenue that same year, according to Axios.

Truth Social lost money in 2023

In its report, Axios pointed to a purported "massive disconnect between the financial fundamentals and stock performance" of former President Trump's media organization, TMTG, which is now valued at more than $7 billion after the merger with DWAC, with the newly combined company trading on the NASDAQ exchange under the ticker symbol "DJT."

The outlet cited a March 25 filing with the U.S. Securities and Exchange Commission which revealed that TMTG earned around $4.1 million in revenue, almost exclusively from advertising on Truth Social, but had more than $58 million in expenses in 2023.

It was further noted Truth Social's revenue had slacked off in the year's fourth quarter after a strong start to the year as well as that its expenses included a $16 million operating loss with the remainder largely comprising of interest payments on its debt.

"The SPAC merger proceeds make TMTG financially viable for a while, but it's no longer possible to even pretend that the share price has any relation to the actual business," the news outlet concluded, and snarkily added, "At this point, owning TMTG is basically an in-kind donation to Donald Trump. Both financially and reputationally."

Stock price fell after initial surge of public trading

CNBC jumped on the anti-Trump doom wagon with a report that highlighted the fact that the revelations from the SEC filing resulted in TMTG's stock price dropping by more than 21% by the close of trading on Monday.

The share price had initially fallen by more than 25% during the trading day but rallied somewhat before the closing bell to end the day at $48.66 per share, down more than $30 from its high of $79.38 per share when it first went public last week.

Yet, even with those stock price losses, the company is still valued at more than $6.6 billion, with former President Trump's 57% share in the company valued at $3.8 billion -- a share that was briefly valued at as much as $6.3 billion when the stock surged after first going public.

Despite reported losses, Trump's net worth still greatly increased

The CNBC report continued to doom-cry by pointing out language in the SEC filing that suggested that the new company "expects to incur operating losses for the foreseeable future," and further noted the disclosure of "material weaknesses" in the company and warnings that its future value was closely tied to former President Trump's legal and political futures.

That said, the report largely glossed over the fact that a substantial portion of TMTG's 2023 losses were due to interest payments on debt that the company no longer holds and won't be recurring thanks to an influx of cash by way of the recent merger with DWAC.

Indeed, in a Monday press release, TMTG CEO Devin Nunes said, "We are excited to be operating as a public company and to have secured access to capital markets."

"Closing out the 2023 financials related to the merger, Truth Social today has no debt and over $200 million in the bank, opening numerous possibilities for expanding and enhancing our platform," he added. "We intend to take full advantage of these opportunities to make Truth Social the quintessential free-speech platform for the American people."

In the end, the media can make as much of an uproar about Truth Social's 2023 losses as it wants to try to denigrate the former president, but the fact remains that his wealth is now vastly increased over what it was previously and the overt efforts of Democrats to bleed him dry financially via lawfare will no longer work as originally intended.

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