They're suing his fat slimy greedy ass....not without reason too. Trump Media co-founders sue company, alleging a scheme to dilute shares People have good days and bad days, that’s normal life, but few people have a day where they lose $300 million on the New York Stock Exchange. Donald Trump had just that kind of a day on Thursday, ho boy. He is not happy. Just a brief review on how Trump came to be at this place: you know that he had a SPAC (Special Purpose Acquisition Company) and its name is DWAC. (Digital World Acquisition Corp.) DWAC was supposed to merge with Trump Media & Technology Group and become a publicly-traded company. That is Trump’s financial lifeline now, because Trump owns 90% of the Truth Social stock and on paper, at least, this looks like a windfall. However, the two co-founders of Truth Social, once contestants on Trump’s TV show The Apprentice, threw a real monkey wrench into his plans, causing a nearly nine-point plunge on the stock market. You can see the plunge in the early afternoon, after the “co-founders of former president Donald Trump’s media company filed a lawsuit Wednesday, claiming that Trump and other leaders had schemed to deprive them of a stake in the company that could be worth hundreds of millions of dollars,” according to the Washington Post: The case is one of three lawsuits filed this week that detail bitter recriminations among people key to the Trump company’s earliest days. The filings will probably serve as the opening salvo in what could be all-out legal warfare ahead of the March 22 shareholder vote on whether to go ahead with the merger.
A social network that is so shitty that even Musk won't buy it. Trump tried to unload Truth Social onto Elon Musk last year: report https://www.rawstory.com/trump-truth-social-2667492568/
Going Broke. Trump Media Lost $58 Million on $4 Million in Sales Last Year https://finance.yahoo.com/news/trump-media-lost-58-million-141844230.html (Bloomberg) -- Donald Trump’s social-media business lost more than $58 million last year as revenue for the former president’s Truth Social platform trickled in, contrasting sharply with the company’s rocketing share price. Trump Media & Technology Group Corp. generated just $4.1 million in revenue for the full year, results reported in a filing Monday morning show, providing an update on the stock that closed its blank-check deal last week. Despite the modest financials, the company was worth more than $7 billion even after a 16% drop in early trading pared its meteoric gain this year, as the meme stock continued to captivate retail traders. The results underscore how richly valued Trump Media is relative to its peers. The company doesn’t report active user numbers, disclosing in its prospectus in February only that Truth Social has about 9 million signups across its platforms. Reddit Inc. — which went public last month and has a similar valuation — had 267.5 million weekly active users in the last quarter, and delivered $804 million in revenue last year. Meanwhile Snap Inc., which has a market value of $19 billion, had a net loss of $1.3 billion on $4.6 billion in sales last year. Snap estimated daily active users for the first-quarter of about 420 million. Re-Election Bet The discrepancy between where Trump Media’s shares trade and how the underlying business performs indicates that investors use it as a way to bet on Trump’s push for re-election. The stock, which has been trading since 2021 under the SPAC’s ticker, has tripled this year as the retail-trading crowd pumps it with posts across Stocktwits and Reddit’s WallStreetBets forum. In the filing, Trump Media’s revenue inched higher from $1.47 million in 2022 as it swung to an annual loss. The company recorded a $50.5 million profit in 2022 after getting a boost from a change in the value related to its convertible notes. Unlike traditional social-media companies that tout metrics like active users or revenue per user, Trump Media “believes that adhering to traditional key performance indicators” could “divert its focus from strategic evaluation with respect to the progress and growth of its business,” according to the prospectus. When regulators inquired about Truth Social’s number of signups and users, the company pushed back, and ultimately disclosed only the signups, filings show. Trump owns a 57% stake in the company, according to the filings with the US Securities and Exchange Commission, which is worth about $4 billion as shares slipped as low as $52.10 on Monday. However, he can’t sell the stake immediately due to a six-month lock-up agreement, hindering his ability to monetize the shares and ease his present cash crunch. Trump’s media company debuted last week after the closing of the merger with Digital World Acquisition Corp. brought in more than $275 million of much-needed cash. The media startup had warned that without the deal there were concerns that it could go bankrupt. The heightened valuation has made it costly and risky to bet against with short sellers facing annual financing costs of 500% to borrow, according to brokerages. That makes it the most expensive US company to bet against with over $100 million of short interest by a large margin, data from financial analytics firm S3 Partners show. Trump currently faces legal troubles including four criminal prosecutions. The first criminal trial — alleging he falsified business records to conceal hush money payments to a porn star before the 2016 election — is set to start April 15. He also faces an April 4 deadline to post a $175 million bond after the New York attorney general proved at trial that he’d inflated his net wealth by billions of dollars a year in bank transactions. He is appealing the judgement.
On brand for Trump. The real problem is lack of revenue. There is virtually no interest in brand matching with Truth Social.
So tell us which major social media company could Trump Media actually afford -- seeing their market caps are all above those of Trump's company. Well maybe Trump Media could acquire the cesspool known as Rumble. It's market cap is a mere 2 billion and it basically has no meaningful revenue while operating at a 131 million loss.