Trump Media drops plan to spin off Truth Social and keeps it within company structure
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Contribution by
Izabelė Pukėnaitė
Trump Media and TAE Technologies said on Wednesday they will not separate Truth Social and other media assets into a new publicly listed company. This means Truth Social will stay under Trump Media’s control instead of becoming its own separate company that people could buy shares in on the stock market.
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Truth Social will not be spun off into a separate company.
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It will stay inside Trump Media, with no new stock listing.
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The decision comes as Trump Media focuses on its merger with TAE Technologies.
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The platform remains part of Trump’s wider media business.
Truth Social is a social media platform launched by Trump Media after Donald Trump was banned from major platforms like Twitter and Facebook following the events of January 6, 2021, at the US Capitol.
It was created as an alternative platform where he and his supporters could communicate after those restrictions.
In 2021, Truth social described itself a refuge for free speech, and claimed to be the “first major rival to ‘Big Tech.”
Now, according to Reuters, TMTG has faced challenges scaling its media business amid competition from larger social networks and uneven user growth.
The companies did not provide a reason for walking back the idea of a Truth Social spin off.
TMTG said it remains focused on completing its merger with TAE and targets closing the deal in the fourth quarter of this year or sooner.
Shares of TMTG were down around 1% in premarket trading after falling over 38% so far this year.
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