Trump Media & Technology Group SPAC partner DWA's filing shows that Truth Social lost $73M on just $3.7M in net sales from its early 2022 launch through H1 2023
The company that TMTG is planned to merge with, DWAC, broke out the surprising results in a securities filing Monday.
The Hollywood ReporterAlex Weprin
Context & Ripple Effects
TMTG’s proposed merger with DWAC had earlier been framed around a company that had not yet shown a product, users, or revenue. By the time Truth Social launched, reports of sharply falling downloads and roughly 513,000 daily active users had already raised questions about its ability to build a durable audience.
The filing supplies a concrete operating-data point for the SPAC transaction: substantial losses alongside limited sales. It narrows the gap between the deal’s headline valuation and the underlying business performance.
First-order effects
DWAC investors receive a clearer view of Truth Social’s early operating economics: $73 million in losses against $3.7 million in net sales through the first half of 2023.
TMTG and DWAC face more immediate scrutiny over whether the proposed merger’s approximately $6 billion valuation can be supported by the platform’s disclosed revenue trajectory.
Second-order effects
The disclosure makes the proposed SPAC combination more dependent on investor appetite for TMTG’s future potential rather than current operating results, following earlier signs that Truth Social’s post-launch usage had fallen from its peak.
It gives investors a more comparable basis for judging the transaction against other public-market opportunities, shifting attention from the platform’s launch narrative to losses, sales, and cash needs.
Third-order effects
If similar disclosures continue to reveal wide gaps between promotional valuations and operating results, SPAC targets may face greater pressure to substantiate revenue assumptions before completing mergers.
The case fits a broader move toward treating public-market disclosure as the test of whether a social platform’s audience can become a sustainable business, rather than relying on brand attention alone.
The trend: SPAC-sponsored media platforms are increasingly being judged on the conversion of attention into disclosed revenue and sustainable unit economics.
Pay attention to the sales increases, tho: “in 2022, Truth Social lost $50 million on just $1.4 million of net sales, and through the first 6 months of this year it brought in $2.3 million, but lost $23 million.” — Rate of revenue tripled from 2022 to 2023 — how? Why? Where i…
running a social media company isn't profitable even when you have the most captive, malleable customer base in the universe apparently [embedded post]
Truth Social is a Mastodon fork; they didn't even need to write their own software. They could have run that business on less than $10 million/year (in my opinion, significantly less). I have no idea what they've spent $73 million on, but this is a debacle.
Break: Former president Trump's Truth Social has lost $73M since launching last year, and has brought in only $3.7M in net sales. https://www.hollywoodreporter.com/ ...
As of June 30, “management has substantial doubt that TMTG will have sufficient funds to meet its liabilities as they fall due,” as the company's accountants issue a “going concern” warning. https://www.hollywoodreporter.com/ ...
More news: Donald Trump's conservative streaming service appears off the table for now, was hit by layoffs earlier this year. Trump “verbally agreed” to keep Truth Social as primary social platform on Oct. 30. https://www.hollywoodreporter.com/ ...
Trump's Truth Social Has Lost $73M Since Launch, New Filing Shows: The company that TMTG is planned to merge with, DWAC, broke out the surprising results in a securities filing Monday.