Will Truth Social be another Trump company that goes bankrupt?

[Poor Richard Saunders]

https://www.msn.com/en-us/money/com...-may-not-survive-accountants-warn/ar-AA1jVG8G

a new regulatory filing reveals that Truth Social's owner, Trump Media & Technology Group, has booked only $2.3 million in sales through June this year, while losing 10 times that amount.

The disclosure also contains a warning from Trump Media & Technology Group's accountants, who said they have "substantial doubt about the company's ability to continue as a going concern."

The company has lost millions of dollars and the accountants are concerned the company will not be able to pay its bills in the next year.

The cautionary language by Trump Media's accountants is known as a "going concern" warning, which indicates that an accounting firm believes a company may not have sufficient cash on hand to pay its debts and could default within the next year, according to S&P Global.

How long will Truth Social survive?
Is the problem that My Pillow is also bankrupt and can't buy ads?
Why doesn't Fox News buy enough ads on Truth Social

Trump Media & Technology Group, has booked only $2.3 million in sales through June this year, while losing 10 times that amount.

2.3 million in sales while losing 23 million is not a sustainable business model even for a Trump run company.

 

[Jarod]

I so not think Trump has any money in it anymore, he got his out already.

 

[Poor Richard Saunders]

I so not think Trump has any money in it anymore, he got his out already.

He still owns a large stake revealed by his financial disclosures but the value of the company has dropped dramatically.

The disclosure valued the parent company of Truth Social, the former president’s social media platform and personal megaphone, at between $5 million and $25 million. That reported value for the parent company, Trump Media & Technology Group, was considerably less than the potential $9 billion valuation for the company when it announced a merger in October 2021 with a cash-rich special purpose acquisition company called Digital World Acquisition Company.

https://www.nytimes.com/2023/04/14/us/politics/trump-personal-financial-disclosure.html

 

[Nordberg]

I so not think Trump has any money in it anymore, he got his out already.

When Trump starts something like this, he gets huge amounts of money from investors and followers. He takes his cut from that and then watches it fail.