Is Truth Social another of Trumps bungled businesses? – The Guardian US
It takes a brave investor to go into business with Donald Trump.
The former presidents hotels and casinos have declared bankruptcy six times. Trumps short-lived airline crashed. He paid out millions of dollars to settle multiple lawsuits for running an unlicensed university that the conservative National Review called a massive scam. And then there is the Trump Organizations looming criminal trial for tax fraud.
For all that, a business built around Trumps famed ability to rile up millions of people online must have seemed a good bet to those who poured money into backing the company behind his rival to Twitter, Truth Social.
Now that too has run into trouble as more than a billion dollars in investment has stalled amid shareholder hesitation and a federal investigation into whether Trump Media and Technology Group broke the law in its dealings with a company set up to provide the money.
As so often with the former president, its not immediately clear what is going on.
Trump launched Truth Social in February after he was thrown off of Twitter for inciting violence after he lost the presidential election. He previously ran a blog, From the Desk of Donald Trump, but it shut down after less than a month because almost no one was reading it.
Truth Social has fared better as a vehicle for Trump to rile his base and rage against his enemies, and for white nationalists and others on the far right to say what they cannot on Twitter. But it has failed to generate the kind of reach enjoyed by other social media platforms.
Trump has about 4 million followers on Truth Social compared with 80 million on Twitter, in part because its reach has been limited by a ban by Googles app store for failing to take down posts making physical threats and inciting violence.
Truth Social had only 11.5m visits in July compared with 7bn to Twitter, according to the online analytics firm Similarweb. Last month, Trump Media reported losing $6.5m in the first half of this year. It is also reported to be in debt to a web hosting company.
That has raised questions about whether investment in Trump Media is a sound business decision or likely to be money thrown into the sinkhole of the former presidents ceaseless political campaigning.
Michael Ohlrogge, a law professor at New York University who specialises in the kind of funding Trump is now seeking, said that there is no evidence Trump Media has a strategy to become a money-making enterprise.
Theres a lot of questions about whether this a viable business. Is it actually going to make any money? Theres plenty of good reasons to doubt that. Its pretty obvious that this was just this thing that he slapped together very quickly, he said.
Trump Media had been counting on a large injection of money from a form of shell corporation created solely to raise funds for another business by merging with it, known as a special-purpose acquisition company (Spac).
Digital World Acquisition Corp was created as a Spac a year ago without any commitment to invest in Trumps media business. Shareholders gambled that their investment would increase in value when Digital World found a company to merge with. Thats exactly what happened when the deal with Trump Media was announced just seven weeks later, driving the price of Digital Worlds shares up tenfold.
But earlier this month, the shareholders failed to meet a deadline to approve the merger, depriving Trump Media and Truth Social of about $1.3bn.
In addition, the Securities and Exchange Commission and federal prosecutors are blocking any merger while they investigate Trump Medias dealings with Digital World after questions were raised by the speed of their tie-up announcement.
Ohlrogge said that the SEC is likely to be looking at whether Trump sealed an agreement, or came close, with Digital World before the Spac began selling shares without telling potential investors, in breach of financial regulations.
If they were already in advanced talks with Trumps Spac and didnt tell that to the initial investors, then that could be a relatively clear violation of the securities laws. Theres relatively good reason to suspect that may have been the case, he said.
Meanwhile Digital Worlds share price has fallen back sharply, from a high of nearly $100 to about $23, although anyone who bought from the initial offering would still double their money.
Ohlrogge said it is not clear why shareholders did not approve the merger by the 8 September deadline. He said that some may not have been paying attention. Others may be withholding approval until Trump resolves issues with the SEC.
What makes the most sense for Trumps company would be to just settle with the SEC, do whatever they want and try to get them happy in order to get them to let the merger move forward. That kind of an approach, though, does not seem to be Trumps preferred method in most legal dealings. He seems to fight tooth and nail, he said.
Some shareholders were twitchy about the wisdom of financial dealings with Trump once they found out where their money was going.
Digital World has now called a special shareholder meeting for next month to extend the deadline for approval of the merger by a year. It remains unclear how that will go after the Spac acknowledged earlier this year that Truth Social may never generate any operating revenues or ever achieve profitable operations.
Jennifer Stromer-Galley, a professor in the school of information studies at Syracuse University and author of Presidential Campaigning in the Internet Age, said that Truth Social is an effective tool for Trump to stay in touch with his base, which is to some extent amplified by journalists writing about his statements. But she questioned whether it could ever get beyond being a political campaigning tool to function as a business.
One of the tremendous assets for Trump has always been his name. Because of his brand he gets an instant base of people that Truth Social can start to expand from. But then it has to expand past that, because thats probably not enough to keep this enterprise going. I dont see how Truth Social expands beyond that very, relatively narrow, hardcore base that is Trumps bread and butter constituency, said Stromer-Galley.
If I were an investor of communications, media, and technology companies, I would be sceptical of what is the actual business that Truth Social is in. When the head of the company cant put together a coherent business case or legal arguments for what theyre doing, is this really someplace you want to put your money?
Go here to read the rest:
Is Truth Social another of Trumps bungled businesses? - The Guardian US
- 'So much for being nice guy': Donald Trump reignites trade tensions, warns China it has violated tariff d - Times of India - May 30th, 2025 [May 30th, 2025]
- Mike Pence Accuses Donald Trump of Ignoring Constitution - Newsweek - May 30th, 2025 [May 30th, 2025]
- We demanded justice after George Floyds death. Donald Trump made things worse, but we fight on | Al Sharpton - The Guardian - May 26th, 2025 [May 26th, 2025]
- Donald Trump Posts All-Caps Memorial Day Message Attacking USA Hating Judges And Scum Who Are Trying To Destroy Our Country - Deadline - May 26th, 2025 [May 26th, 2025]
- CNN abruptly stopped for breaking news as Donald Trump explodes at reporter over Ukraine question - The Mirror US - May 26th, 2025 [May 26th, 2025]
- Donald Trump is throttling Americas oil industry - The Economist - May 11th, 2025 [May 11th, 2025]
- Donald Trump prizes more Gulf investment in the US - BBC - May 11th, 2025 [May 11th, 2025]
- Donald Trump Vows to Reduce Prescription Drug Costs by Up to 80 Percent - Newsweek - May 11th, 2025 [May 11th, 2025]
- What is habeas corpus and why might Donald Trump want to suspend it? - BBC - May 11th, 2025 [May 11th, 2025]
- Donald Trump calls for 20,000 new officers to aid with deportations - BBC - May 11th, 2025 [May 11th, 2025]
- Donald Trump is a bigger threat to UK than terrorists, poll says - politico.eu - May 8th, 2025 [May 8th, 2025]
- Donald Trump to announce 'major trade deal' with a big and highly respected nation - Times of India - May 8th, 2025 [May 8th, 2025]
- Donald Trump picks the wrong trade fight with China - The Economist - April 30th, 2025 [April 30th, 2025]
- Donald Trump says he will be talking to Australias prime minister about tariffs - The Guardian - April 30th, 2025 [April 30th, 2025]
- Donald Trump Names His Dream Successor for Pope Francis Ahead of the Papal Conclave - People.com - April 30th, 2025 [April 30th, 2025]
- Giants say they had no conversations with Donald Trump about Saquon Barkley - NBC Sports - April 30th, 2025 [April 30th, 2025]
- Donald Trump is proving disastrous for big tech - The Economist - April 30th, 2025 [April 30th, 2025]
- Opinion | Donald Trump Is Selling the White House to the Highest Bidder - The New York Times - April 27th, 2025 [April 27th, 2025]
- 'Kicking butt' or 'going too fast'? Donald Trump voters reflect on 100 days - BBC - April 27th, 2025 [April 27th, 2025]
- Donald Trump's approval rating takes a hit as he reaches 100 days: New polls - USA Today - April 27th, 2025 [April 27th, 2025]
- Experts On Russia Say Donald Trump Is Wrong About The War In Ukraine - Forbes - April 27th, 2025 [April 27th, 2025]
- Donald Trump went after one of America's top law firms. Its decision to fight back took just two hours. - Business Insider - April 27th, 2025 [April 27th, 2025]
- Sweeping change. Donald Trump voters reflect on controversial first 100 days of second term. - Chicago Tribune - April 27th, 2025 [April 27th, 2025]
- Donald Trump wants celebrities to kiss the ring. Bill Maher did: wholl be next? | Emma Brockes - The Guardian - April 25th, 2025 [April 25th, 2025]
- Donald Trump's trip to Pope Francis' funeral puts a sharper focus on their clashes over the years - AP News - April 25th, 2025 [April 25th, 2025]
- Donald Trump Is Tanking One of Americas Greatest Exports in the Middle of a Trade War - Slate - April 25th, 2025 [April 25th, 2025]
- 'Reality bites Donald Trump in the you know where': China contradicts the White House over tariffs - MSNBC News - April 25th, 2025 [April 25th, 2025]
- Donald Trump's "Objectively Embarrassing And Hilarious" Message To Vladimir Putin Is Now A Meme - Yahoo - April 25th, 2025 [April 25th, 2025]
- The Nobel is just the start: 16 imagined victories for Donald Trump | Ariel Dorfman - The Guardian - April 21st, 2025 [April 21st, 2025]
- Is Donald Trump Breaking the Law? Seven Experts Weigh In. - The Free Press - April 21st, 2025 [April 21st, 2025]
- JD Vance: Donald Trump's Global 'Bad Cop' In His First 100 Days In Office - NDTV - April 21st, 2025 [April 21st, 2025]
- What is the Insurrection Act? What To Know as Donald Trump Deadline Hits - Newsweek - April 21st, 2025 [April 21st, 2025]
- Vince Vaughn Visits Donald Trump and The White House Shares Wedding Crashers Parody Poster - Variety - April 21st, 2025 [April 21st, 2025]
- President Donald Trump Is Saving Social Security Hundreds of Millions of Dollars per Year. But Is It Enough to Prevent Benefit Cuts? - Yahoo Finance - April 21st, 2025 [April 21st, 2025]
- We knew Donald Trump is bad at business. Now the world does, too. | Sheneman cartoon - NJ.com - April 14th, 2025 [April 14th, 2025]
- Donald Trump is now badly wounded. Europe and the UK can seize an advantage - The Guardian - April 12th, 2025 [April 12th, 2025]
- Bill Maher Says Donald Trump Was Gracious and Willing to Listen During White House Visit - hollywoodreporter.com - April 12th, 2025 [April 12th, 2025]
- Bill Maher Recounts Surprising Meeting With Gracious and Measured Donald Trump - TV Insider - April 12th, 2025 [April 12th, 2025]
- Bill Maher's full monologue on his Donald Trump meeting: Read the transcript - USA Today - April 12th, 2025 [April 12th, 2025]
- Donald Trump's tariffs on China, EU and more, at a glance - BBC - April 12th, 2025 [April 12th, 2025]
- Donald Trump Says 'Market Is Going To Boom,' Claiming '$6-7 Trillion' Worth Of Inflows Will Come After The Worst Selloff Since 2020 - Yahoo Finance - April 5th, 2025 [April 5th, 2025]
- Live updates: 'Hands Off!' protesters rally against Donald Trump, Elon Musk - The Hill - April 5th, 2025 [April 5th, 2025]
- Donald Trump's Tariff Formula 'Based on an Error'Conservative Think Tank - Newsweek - April 5th, 2025 [April 5th, 2025]
- The ridiculous real story behind the tariff plan that turned Donald Trump into a global disaster - MSNBC News - April 5th, 2025 [April 5th, 2025]
- "Hang Tough, It Won't Be Easy": Donald Trump To Americans Amid Tariff War - NDTV - April 5th, 2025 [April 5th, 2025]
- This Economic Paradox Nearly Took Down Three Presidents. Is Donald Trump Next? - Politico - April 5th, 2025 [April 5th, 2025]
- Donald Trump says he is very angry with Vladimir Putin over Ukraine - The Guardian US - March 30th, 2025 [March 30th, 2025]
- Donald Trump: Is Irish America moving towards the Republican Party? - BBC.com - March 30th, 2025 [March 30th, 2025]
- Globalisation will triumph over Donald Trump - Financial Times - March 30th, 2025 [March 30th, 2025]
- Donald Trump's Approval Rating Over Economy Plunges to New Low - Newsweek - March 28th, 2025 [March 28th, 2025]
- Called a 'scab' during the campaign, Donald Trump wins UAW backing on tariffs - Detroit Free Press - March 28th, 2025 [March 28th, 2025]
- Donald Trump is moving fast and breaking things, but that may result in a better US | Simon Jenkins - The Guardian - March 28th, 2025 [March 28th, 2025]
- Donald Trump Has Invented Something New and Chilling - Yahoo - March 28th, 2025 [March 28th, 2025]
- Column: Thank you, Donald Trump, for giving me my dad back - - The Daily Tar Heel - March 26th, 2025 [March 26th, 2025]
- Donald Trump's Approval Rating Is Negative With Nearly Every Pollster - Newsweek - March 26th, 2025 [March 26th, 2025]
- Andrii Smytsniuk | Condolences to Kyiv: Ukraine, King Solomon, and Donald Trump - The Daily Pennsylvanian - March 26th, 2025 [March 26th, 2025]
- Whoopi Goldberg has chilling warning about Donald Trump on The View - PennLive - March 26th, 2025 [March 26th, 2025]
- Donald Trump threatens US tariffs on countries buying Venezuelan oil - BBC.com - March 25th, 2025 [March 25th, 2025]
- Donald Trump Calls George Clooney a Second Rate Movie Star After Clooney Calls Out the Government for Trying to Make Journalists Smaller: They Dont... - March 25th, 2025 [March 25th, 2025]
- People Can't Help But Giggle Over This Portrait Of Donald Trump That He Desperately Wants Removed From The Colorado State Capitol - Yahoo... - March 25th, 2025 [March 25th, 2025]
- Donald Trump will soon mark 100 days in power - where does his opposition stand? - Sky News - March 22nd, 2025 [March 22nd, 2025]
- Putin said he prayed for his friend Donald Trump after 2024 assassination attempt, U.S. envoy says - NBC News - March 22nd, 2025 [March 22nd, 2025]
- Donald Trump and John Roberts: A president, a chief justice and a judiciary under pressure - Reuters - March 22nd, 2025 [March 22nd, 2025]
- Prediction: President Donald Trump Is Going to Break His Social Security Promise, and These 16 Words Prove It - The Motley Fool - March 22nd, 2025 [March 22nd, 2025]
- Full List of Names Donald Trump Has Stripped of Security Clearance - Newsweek - March 22nd, 2025 [March 22nd, 2025]
- Social Security: What Donald Trump And Elon Musk Are Doing About Entitlement Program - Forbes - March 13th, 2025 [March 13th, 2025]
- Why John Mearsheimer Thinks Donald Trump Is Right on Ukraine - The New Yorker - March 13th, 2025 [March 13th, 2025]
- What the U.S. ceasefire proposal means for Ukraine, Russia, Europe and Donald Trump - The Conversation Indonesia - March 13th, 2025 [March 13th, 2025]
- Well, It Looks Like We Know What Donald Trump Will Do About Daylight Saving Time Now - Yahoo - March 7th, 2025 [March 7th, 2025]
- Jimmy Carter Reminds Us of Political Integrity; Donald Trump and Corporate America Remain Committed to Darkness - Progressive.org - March 7th, 2025 [March 7th, 2025]
- Donald Trump Supporters Are Waking Up To The Reality Of Their Ballot Choices, And The Stories Are A Loooooot - Yahoo - February 20th, 2025 [February 20th, 2025]
- It took Donald Trump less than a decade to turn the US toward Putins Russia - CNN - February 20th, 2025 [February 20th, 2025]
- Are We Still Friends?: How Donald Trump Is Unraveling the Western Alliance - Vanity Fair - February 20th, 2025 [February 20th, 2025]
- Prediction: President Donald Trump Will Break His Social Security Promise and Propose Cuts -- Just Not in the Way You Might Think - The Motley Fool - February 16th, 2025 [February 16th, 2025]
- It Pays to Be a Friend of Donald Trump - The FP - February 16th, 2025 [February 16th, 2025]
- Donald Trump's 'Drastic' Funding Cuts Face Republican Opposition - Newsweek - February 16th, 2025 [February 16th, 2025]
- President Donald Trump Hangs His Framed Mugshot Outside the Oval Office - E! Online - E! NEWS - February 16th, 2025 [February 16th, 2025]
- Donald Trump wants states and cities to do as they are told - The Economist - February 16th, 2025 [February 16th, 2025]
- Donald Trump Wants Reciprocity in Trade: Heres a Closer Look - Council on Foreign Relations - February 16th, 2025 [February 16th, 2025]
- Interview with President Donald Trump airing ahead of Super Bowl 59: How to watch - USA TODAY - February 9th, 2025 [February 9th, 2025]