Trump Media & Technology Group says it may spin off Truth Social

Trump Media & Technology Group announced on Friday that it is considering spinning off its Truth Social app into a separate, publicly traded business following a $6 billion merger with fusion energy company TAE Technologies. The company stated that if approved, the spinoff would take place after the completion of the merger with TAE, and shareholders would receive stock in the newly separated entity. Truth Social would then merge with Texas Ventures III, a special purpose acquisition company established in 2024 for the purpose of acquiring or merging with other businesses.

President Trump, who owns 52% of Trump Media’s outstanding shares, is the driving force behind Truth Social with 11.8 million subscribers on the platform. Despite this, Truth Social has struggled to attract advertisers, leading to a 4% decline in revenue for the platform in the last quarter. In response to these challenges, Trump Media has diversified its focus over the past year, venturing into financial services by launching investment funds and investing $2 billion in bitcoin to establish a cryptocurrency reserve. The company further expanded its scope in December by announcing the merger with TAE Technologies, aiming to support the development of energy solutions for AI data centers.

While Trump Media is exploring the possibility of spinning off Truth Social, the company emphasized that discussions are ongoing and no definitive decision has been made yet. Trump Media’s shares, traded under the ticker symbol “DJT,” have experienced an 18% decrease in value this year. Despite this, the stock saw a marginal increase to $11.02 in early trading on Friday.

With the potential spinoff of Truth Social, Trump Media & Technology Group is navigating strategic shifts in its business focus. The company’s evolution from a conservative-leaning social media platform to a diversified entity reflects its adaptability and willingness to explore new opportunities. As Trump Media continues to evaluate its options, the future direction of Truth Social and the company as a whole remains subject to ongoing deliberations.

This article was edited by Alain Sherter.