According to a Washington Post report, the prospects for survival of Donald Trump’s Truth Social are increasingly bleak, with the company that planned to take the social media platform public now suggesting that probable bankruptcy looms on the horizon.
As the report points out, Truth Social has failed to pay web hosting fees to the point where lawyers are now involved, traffic is plummeting, the company’s stock value is plunging and cash is running out. .
With the Post’s report, “Former President Donald Trump’s Truth Social website is facing financial challenges as its traffic remains low and the company to acquire it is expressing concern that its legal issues could lead to a decline its popularity,” said WaPo’s Drew Harwell. wrote that the former president’s legal troubles added another cloud to Truth Social’s future.
In a filing this week, Digital World Acquisition, which planned to take Trump Media & Technology Group public, now issues warnings about what the future may bring.
“The company warned this week that his business could be damaged if Trump “becomes less popular or if there are new controversies that damage his credibility.” The company has seen its stock price plunge nearly 75% from its peak in March and said in a filing last week that it lost $6.5 million in the first half,” the report said, adding “There are signs that the financial position of the grassroots society has begun to erode. The Trump company stopped paying LawForgea conservative web hosting service, in March and now owes it more than $1 million, according to Fox Business, which first reported the dispute.”
According to Harwell, “Trump’s companies have had to face many similar Payment battles over the years. In earlier SEC filings, Digital World also noted that “a number of companies associated with [Trump] have filed for bankruptcy” and that “there can be no assurance that [Trump’s media company] will not also go bankrupt.'”
“In fact, the documents filed by Digital World have always been pessimistic about the likelihood of Truth Social being a success. Trump’s company ‘may never generate operating revenue or achieve profitable operations,'” said in May, and if he “fails to deal with [its] risks, his business will most likely fail,” the report adds while noting that traffic to the site has plummeted, with Harwell writing, “Trump, the site’s most popular user, has less than 4 million subscribers , and the site’s most active trending topics, including #DefundTheFBI, only showed a few thousand people posting there in recent days, according to site data. By comparison, Twitter says about 37 million people in the United States actively use the site every day… But since the FBI’s search for Mar-a-Lago, Truth Social’s audience has slowed, according to traffic estimates from Similarweb, an online analytics company. Its US viewership has dropped to around 300,000 views per day, from nearly 1.5 million on launch day.