Trump Media and TAE Technologies Cancel Truth Social Spin-Off Plan
Trump Media and Technology Group (TMTG) and TAE Technologies announced on Wednesday they will not proceed with spinning off Truth Social into a separate publicly listed company. TMTG, which operates the Truth Social platform targeting conservative audiences, has struggled with scaling its media business amid competition from larger social networks. The decision comes as TMTG focuses on completing its merger with TAE, which it targets to close in the fourth quarter of 2026 or sooner.
Trump Media and Technology Group and TAE Technologies jointly announced they have decided against spinning off Truth Social and certain other TMTG media assets into a new publicly listed company. The companies did not disclose specific reasons for abandoning the spin-off plan. TMTG, founded by U.S. President Donald Trump and known for its Truth Social platform aimed at conservative audiences, has faced significant challenges in scaling its media business while competing with larger social networks and managing uneven user growth. The companies stated they remain focused on completing their merger, with a target closing date in the fourth quarter of 2026 or earlier. TMTG shares have declined approximately 38 percent year-to-date and fell around 1 percent in premarket trading following the announcement.
What's missing
The sources do not explain the original rationale for proposing the spin-off, nor do they provide details on what prompted the reversal of this strategy at this particular time.
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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