The Truth Social platform, which was launched by former US President Donald Trump, has lost $73 million since its launch in early 2022, according to a stock exchange filing from Digital World Acquisition Corp., a special purpose acquisition company that plans to merge with the company.
- In 2022, Truth Social recorded a loss of $50 million with net sales of only $1.4 million.
- It also lost $23 million in the first half of this year, and its net sales amounted to $2.3 million.
According to the disclosure, an independent accounting firm affiliated with Trump Media & Technology Group (TMTG) indicated that the financial condition raises significant doubts about its ability to continue as a going concern.
She said that TMTG believes that it may be difficult to raise additional funds through traditional financing sources in light of the lack of tangible progress towards completing its merger with Digital World.
The disclosure stated that the company also canceled several jobs last March.
Attracting the audience
Since the launch of its service on February 21, 2022, the Truth Social platform has suffered from audience polarization problems, which led to a user base smaller than expected.
Trump had announced the launch of his social media application in October 2021 and said that he would confront major technology companies such as Twitter - currently x - and Facebook after previously banning his accounts.
