The company that buys Donald Trump’s media network, Truth Social, warned investors on Monday that there could be a threat of bankruptcy given the former president’s history of failed businesses.
A regulatory filing by Digital World Acquisition Corp. highlighted several examples of Trump-related bankruptcies and noted that there is “no guarantee” that Truth Social will succeed.
Digital World announced a merger with Trump Media and Technology Group (TMTG), owner of Truth Social, in October. The social network was introduced in February after the former president was expelled from major social media platforms following the January 6, 2021 insurrection in the US. USA Capitol.
In Monday’s filing, Digital World described the bankruptcies of several Trump companies, adding Trump Taj Mahal, Trump Plaza and Trump Castle in Atlantic City, as well as those of Trump University, Trump Vodka, Trump Steaks and GoTrump. com.
“Several corporations that had licensing agreements with President Trump have failed. There is no guarantee that TMTG will not fail as well,” the file said. “While all of the above is owned by corporations other than TMTG, there can be no guarantee that TMTG’s functionality will outperform the functionality of those entities. “
Trump will retain significant influence over TMTG, controlling between 47 and 58 percent of the company and serving as president, according to the dossier. The agreement also states that Trump has committed to posting on Truth Social six hours before posting similar posts on other platforms. to maximize on-site exposure. After that, Trump can post on any other social media platform he needs.
In the first few months after its launch, Truth Social was widely noticed as a crisis through users reporting that the site was being invaded by bots and technical bugs, while thousands of other people were on waiting lists. Trump and his circle of relatives did. He didn’t even seem enthusiastic about the app in its early days. The former president remained largely silent on the platform until April, while some of his young people maintained a greater presence on Twitter.
Truth Social has been criticized for having an interface that looks a lot like Twitter, from which Trump has been suspended. However, Tesla CEO Elon Musk, who pushed through a bid to buy Twitter for $44 billion, said he would reinstate Trump’s account if the deal was reached.
Reacting to its complicated start, Truth Social announced last month that it would attempt to make “major capacity upgrades” for the app’s “performance and reliability. “
Newsweek reached out to TMTG for comment.