Trump Ally Proposes Rescue Plan for Truth Social

Financial woes loom as Truth Social faces uphill battle

by Zain ul Abedin
Trump Ally Proposes Rescue Plan for Truth Social
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In a bid to revitalize the faltering Truth Social, a close ally of Donald Trump, Devin Nunes, has announced ambitious plans to transform the social media platform into a more comprehensive digital hub. As the CEO of Truth Social and a former GOP congressman, Nunes revealed these plans on conservative network Real America's Voice, aiming to integrate features reminiscent of major platforms like Instagram, Facebook, Twitter, Reddit, and TikTok.

According to Nunes, Truth Social will soon offer a unique feature allowing users to view television shows that have been removed or restricted on other platforms. “You’ll be able to actually watch television within Truth Social," Nunes stated, hinting at creating a sanctuary for content deemed too controversial for mainstream media.

This strategic pivot comes at a critical time for Trump Media & Technology Group (TMTG), which manages Truth Social and is predominantly owned by Trump, holding nearly 60% of the company. Despite the high initial enthusiasm that marked its stock market debut earlier this year with shares soaring to $78, TMTG's financial stability has been under scrutiny.

Recent figures from Google Finance show a stark decrease in stock value, now standing at $22.84 per share.

Truth Social's Financial Struggle

The platform, which launched in February 2022 following Trump's ban from X and Facebook due to his controversial posts during the Capitol riots, has struggled to attract a substantial user base compared to its giant counterparts.

With about 500,000 active users on iOS and Android, it pales in comparison to the 75 million on X and 142 million on Facebook. Despite these challenges, TMTG went public through a merger with Digital World Acquisition Corp., boosting its valuation to $11 billion at one point.

However, a recent SEC filing revealed concerning financial details: a revenue of just over $4.1 million against staggering costs of $58.2 million, culminating in a $16 million operating loss. The auditor BF Borgers expressed significant doubts about the platform’s future viability.

Nevertheless, Nunes remains optimistic. Speaking to Fox News, he defended the financial strategy, emphasizing the absence of debt and a robust cash reserve of $200 million as key strengths.

"We are looking at the whole ecosystem, whether that’s through acquiring technology or building it," Nunes explained. He highlighted a three-year plan focused on independence from major tech companies, aiming to cement Truth Social's place in the competitive social media landscape.