Trump Media and TAE Technologies Cancel Truth Social Spin-Off Plan
Trump Media & Technology Group and TAE Technologies announced Wednesday they have scrapped plans to spin off Truth Social and other media assets into a separate publicly traded company. The spin-off, originally announced in February, would have seen Truth Social merge with special-purpose acquisition company Texas Ventures III before shares were distributed to shareholders. The reversal leaves the $6 billion merger between Trump Media and fusion energy firm TAE Technologies as the primary transaction, with both companies targeting a close by Q4 2026.
Trump Media & Technology Group, TAE Technologies, and Texas Ventures III announced Wednesday they would no longer pursue a spin-off of Truth Social or other Trump Media assets, citing 'further evaluation' but offering no specific reason for the decision. Under the original February plan, Truth Social would have merged with Texas Ventures III after Trump Media completed its merger with TAE Technologies, with shares of the new entity distributed to existing shareholders. The companies said they remain committed to completing the $6 billion Trump Media–TAE Technologies merger 'as soon as possible,' with a Q4 2026 target. Trump Media's market capitalization stood at approximately $2.2 billion on Wednesday, down nearly 75% from its all-time high of roughly $8.7 billion in January 2025, with shares falling around 41% year-to-date. President Trump holds a 52% stake in Trump Media — approximately 114.7 million shares — valued at roughly $932.5 million at current prices. Trump Media has been diversifying beyond its core social media platform, with ventures into cryptocurrency through Truth.Fi and plans to enter prediction markets in partnership with Crypto.com.
What's missing
No explanation has been provided by any of the parties for why the spin-off was abandoned, leaving unclear whether the decision was driven by regulatory, financial, or strategic concerns.
What different sources said
- Channel NewsAsiaCenter
Trump Media and TAE Technologies will not spin off Truth Social
- Yahoo FinanceCenter
Trump Media and TAE Technologies will not spin off Truth Social
- ForbesCenter
Trump’s Truth Social Won’t Be Its Own Company Anymore, Parent Firm Says
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