Advertising industry veteran Martin Sorrell recently raised concerns about the financial prospects of former President Donald Trump’s social media platform, Truth Social. In a recent interview, Sorrell stated that it is currently “unfathomable” that advertisers would want to buy ads on the platform.
The Trump Media & Technology Group (TMTG) made headlines when it went public through a SPAC deal with Digital World Acquisition. The company’s shares surged over 50% on the first day of trading before ultimately ending up 16%.
Despite the initial excitement surrounding the IPO, TMTG has struggled to demonstrate a clear path to profitability. Truth Social reported a loss of $10.6 million in the first nine months of 2023. Despite this, Trump was able to make a paper fortune of over $4 billion from the listing.
Trump’s new venture has faced challenges beyond financial issues. The former president is currently embroiled in a number of legal battles, including a civil fraud case that resulted in a reduced $175 million bond. Despite these challenges, a spokesperson for TMTG dismissed claims that the share price movement defied logic.
Trump created Truth Social in 2021 after being banned from Twitter in the wake of the Jan. 6 Capitol attack. The platform was intended to provide a space for conservative voices to be heard in the social media landscape. However, with mounting financial and legal challenges, the future of Truth Social remains uncertain.
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