Trump Media, Truth Social misplaced $58 million final yr, new SEC submitting says

Former president Trump’s social media firm made simply over $4 million in income final yr, regardless of a highflying inventory market debut final week that despatched the corporate’s worth hovering to greater than $8 billion.

Trump Media & Technology Group stated in a brand new Securities and Exchange Commission submitting Monday that the corporate misplaced greater than $58 million final yr. Its income within the final quarter of the yr dipped under $1 million, down from its earlier quarter’s earnings of about $1.07 million.

The share value of the corporate — which makes use of the inventory ticker DJT, for Trump’s initials — plunged 15 p.c Monday morning. The drop shaved a whole lot of tens of millions of {dollars} off the corporate’s market worth.

The new monetary figures throw into stark reduction the hole between Trump Media’s extremely hyped investor-driven valuation on the general public inventory market and the truth of its enterprise efficiency.

Reddit, the discussion-board service that lately went public and whose shares are buying and selling at decrease costs than Trump Media, made greater than $800 million in income final yr.

Trump Media, which makes cash completely by promoting on Truth Social, has struggled to achieve a broad viewers. Truth Social’s web site peaked this month at 277,000 U.S. guests Tuesday, the primary day of its public buying and selling, in accordance with estimates from the web analytics agency SimilarWeb. On the identical day, Reddit noticed greater than 32 million U.S. guests.

Trump invested no cash within the firm and owns about 60 p.c of it — a stake price about $4.6 billion. SEC filings final week stated Trump was given 78 million shares of the corporate and stood to earn tens of millions extra over the following three years if the inventory stayed above $12 to $17.

Trump can’t promote the shares for six months on account of a provision within the firm’s merger settlement, often called a lockup, except the corporate’s board approves it. Cashing out early, nevertheless, might sink the inventory value by flooding the market with shares and undermining investor confidence in Trump’s dedication to the model, monetary analysts stated.

The board consists of Trump’s son Donald Trump Jr.; Robert E. Lighthizer, Trump’s former commerce consultant; Linda McMahon, his former administrator of the Small Business Administration; and Kash Patel, who served on Trump’s National Security Council.

Trump Media’s chief govt, the previous Republican congressman Devin Nunes, was given 115,000 shares, a stake price about $6.9 million at the moment. He and different board members are certain by the identical lockup settlement.

Nunes is paid a $750,000 wage that’s topic to extend to $1 million inside two years. The firm’s two chief monetary officers, Phillip Juhan and Andrew Northwall, are every paid about $350,000. Nunes, Juhan and Northwall may even every obtain $600,000 “retention bonuses” this month.

Patel was paid $130,000 final yr by a consulting settlement. Dan Scavino Jr., Trump’s White House social media director, was additionally paid $240,000 final yr by a consulting settlement that listed him as an impartial contractor, the submitting exhibits. He, too, might be given a $600,000 retention bonus.

The submitting exhibits that Digital World Acquisition, the particular goal acquisition firm that merged with Trump Media to take it public, paid $18 million to the SEC as a part of a settlement final week.

This is a creating story. Please examine again for updates.

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