Donald Trump created Truth Social after being suspended from Twitter and Facebook following the Capitol riots on January 6, 2021. After his victory in the November elections, Trump transferred all his shares to his personal trust, the Donald J. Trump Revocable Trust, as a “goodwill gift.”
The parent company of Truth Social, Trump Media & Technology Group, reported a loss of $400 million last year, with its annual revenue dropping 12% to just $3.6 million. The company attributed these losses partly to a revenue-sharing agreement with an undisclosed advertising partner.
In December, Trump transferred all his shares, valued at around $4 billion, to his personal trust. Donald Trump Jr., his eldest son, is the sole trustee and has full control over investment and voting decisions within the trust. Trump created Truth Social after being excluded from major social networks, seeking an alternative platform.
Trump Media, based in Sarasota, Florida, explained that it is still in its “early development phase” and, therefore, does not report key performance metrics, such as the number of subscribers or daily interaction with the platform.
The company began trading publicly in March after merging with Digital World Acquisition Corp, a special purpose acquisition company (SPAC), a route that facilitates the entry of emerging businesses into the public market.
