“Trump Media Reports $327.6 Million Loss Amid Struggles” Financial Woes Persist for Trump’s Social Platform
BY JABIN BOTSFORD/THE WASHINGTON POST/GETTY IMAGES
The financial troubles plaguing former President Donald Trump’s media company and social platform continue to mount, according to a new analysis. The Daily Beast reported Monday that Trump Media, the publicly traded parent company of Trump Social, faced a net loss of nearly $330 million in the first three months of 2024.
“Trump Media…reported $770,500 in revenue—crediting its ‘nascent advertising initiative’—down from $1.1 million last year,” the report states. “However, it also reported a net loss of $327.6 million during the first three months of the year, as compared with a loss of $210,300 a year ago.”
Trump Media has struggled since it went public through a merger with the “blank check” firm Digital World Acquisition Corp. The company’s financial performance has been disappointing, with shares initially trading over $65 before plunging to less than half that value. They have since rallied slightly to just under $50, but this is still far short of the original market capitalization.
In a statement, CEO Devin Nunes, who previously served as a Trump ally in Congress, attributed $311 million in non-cash expenses to “merger-related expenses” linked to Digital World Acquisition Corp. earlier this year, according to the Daily Beast.
Nunes attempted to reassure stakeholders by stating, “Promising that it had ‘sufficient working capital to fund operations for the foreseeable future,’ Trump Media reported cash and cash equivalents of $273.7 million at the end of the quarter. It said it was still in an ‘early stage’ of its development, and that it remained ‘focused on long-term product development,’ including a live streaming platform to be launched through Truth Social, ‘rather than quarterly revenue.'”
Adding to the company’s difficulties, the previous auditor for Trump Media, Colorado-based BF Borgers, has been charged with fraud by the Securities and Exchange Commission. This has led to the company dropping the auditor, which in turn delayed the quarterly earnings report due to issues surrounding that dismissal.
The social media company is grudgingly reporting its dire performance so far this year, struggling to stabilize after its public debut. Despite the optimistic statements from its CEO, the company’s financial trajectory raises significant concerns. The challenges are compounded by the ongoing legal and regulatory scrutiny, as well as the volatile market performance of its shares.
As Trump Media continues to navigate these turbulent waters, the focus on long-term product development and potential new ventures like live streaming through Truth Social may offer a path forward. However, the substantial losses and the external pressures from regulatory bodies create an uncertain future for the company. The coming months will be crucial in determining whether Trump Media can recover from its current financial woes and achieve the stability it aims for.
