In addition to his legal problems, Donald Trump must also face economic setbacks. The former President of the United States’ media company, Trump Media and Technology Group (TMTG), announced on Monday that it had lost more than $300 million in the first quarter of 2024.
The group made a net loss of $327.6 million from January to March, compared to a net loss of just over $210,000 in the same period last year. Over these three months, TMTG, whose main asset is the social network Truth Social, only earned $770,500 in turnover.
A group on the stock market since March 26
Listed on the New York Stock Exchange since March 26, the media group of the Republican candidate for the White House is now required to publish its quarterly results.
To enter Wall Street, TMTG merged with Digital World Acquisition Corp (DWAC), a listed vehicle, or SPAC, whose sole purpose is to allow a company to more easily access the Stock Exchange. This cost Donald Trump’s group more than $6 million, quadrupling the operational loss compared to the 1st quarter of 2023, to $12.1 million.
“According to data provided to TMTG, as of April 29, 2024, the company’s shares were held by more than 621,000 shareholders, the vast majority of whom are retail investors,” detailed the company.
Trump’s fortune cut
The price of Trump Media and Technology Group collapsed by more than 70% after its IPO, before rebounding from mid-April. This fall had reduced the fortune of Donald Trump, who controls 57.3% of TMTG shares, by several billion dollars.
The group’s general director, Devin Nunes, a former Republican elected official, had accused hedge funds of manipulating the market to lower its share price using an illegal mechanism. He assured Monday that TMTG is “well capitalized.” “Our positive working capital allows us to explore and pursue a wide range of initiatives and innovations to grow the Truth Social platform, including potential mergers and acquisitions activities,” he added. . “We are particularly excited to advance the field of live TV streaming by developing our own content delivery network,” commented Devin Nunes.