Billionaire Slams Trump's Truth Social by Using Harsh 4-Letter Term

Media mogul Barry Diller casts doubt on Trump's venture.

by Nouman Rasool
Billionaire Slams Trump's Truth Social by Using Harsh 4-Letter Term
© Scott Olson/Getty Images

In a recent turn of events that has sent ripples through both the media and financial sectors, Barry Diller, a titan in the media industry, delivered a scathing critique of Trump Media, the conglomerate behind former President Donald Trump's social platform, Truth Social.

Speaking on CNBC's "Squawk Box," Diller did not mince words, labeling the company a "scam" shortly after it made its public debut last week. The sharp rebuke from Diller comes amidst a surge in trading activity surrounding Trump Media & Technology Group.

The company, which counts Donald Trump as its majority shareholder, saw its shares climb to an impressive $79 following its entry into the public market. However, the company's financial disclosures reveal a troubling picture: a revenue of just $4.1 million against losses nearing $58.2 million in the last year, with share prices experiencing a significant downturn to $46 as of Thursday evening.

Diller Critiques Trump Media

Diller's commentary draws a parallel to the GameStop stock frenzy of 2021, a comparison made by CNBC host Andrew Ross Sorkin in light of the unpredictable trajectory of Trump Media. "It's ridiculous.

The company has no revenue," Diller stated, expressing skepticism about the company's viability as a larger business venture, even in the event of Trump's re-election. Amidst probing questions from Sorkin about the potential for investor deception and the broader implications for those backing the venture, Diller remained unequivocal, characterizing investors as "dopes" caught up in a misguided transfer of wealth.

This exchange comes in the wake of a significant disclosure from Trump Media, which reported a $1 billion decline in the former president's net worth. Despite the financial turbulence, Trump championed Truth Social in a post on the platform, touting its "AMAZING" status, with claims of over $200,000 in cash reserves and zero debt.

"Very good for a startup, and growing fast," he asserted.