Trump Media Loses More Than $400 Million In 2024

The parent company of Truth Social, President Donald Trump's social networking platform, reported a loss of $400.9 million last year, with annual revenue dropping 12% to $3.6 million.

Trump Media & Technology Group released its earnings late Friday, attributing part of the $400.9 million loss to a revenue-sharing deal with an unnamed advertising partner.

After securing victory in the U.S. presidential election in November, Donald Trump transferred his entire stake—estimated to be worth around $4 billion on paper—to the Donald J. Trump Revocable Trust in December. The transfer was described as a "bona fide gift." Trump's shares represented more than half of the total stock in the company, giving him significant control over its ownership prior to the transfer.

The parent company, headquartered in Sarasota, Florida, stated that due to its "early development stage," it does not disclose the "traditional key performance indicators" typically reported by other social media platforms. This includes metrics such as the number of sign-ups, daily or monthly active users, or ad viewership.

Donald Trump Jr., the oldest of President Donald Trump's five children, has been appointed as the sole trustee of the Donald J. Trump Revocable Trust. In this role, he possesses exclusive control over all securities held by the trust, including full authority over voting rights and investment decisions. This arrangement grants him significant influence over the trust's financial assets and strategic direction.

Trump Media became a publicly traded entity in March after merging with Digital World Acquisition Corp., a shell company that operates as a special purpose acquisition company (SPAC). SPACs are often used by emerging businesses as a quicker and more efficient alternative to the traditional initial public offering (IPO) process. By merging with Digital World Acquisition Corp., Trump Media was able to bypass some of the more complex and time-consuming steps involved in a conventional IPO, allowing the company to get its shares trading on the public market much faster than it would have otherwise.

Donald Trump launched Truth Social after being banned from Twitter and Facebook in the aftermath of the January 6, 2021, Capitol riot. The platform was created as an alternative to mainstream social media, giving Trump a space to communicate freely following his social media suspensions.