Fox News host Maria Bartiromo confronted Truth Social CEO Devin Nunes on Sunday over the recent financial struggles of former President Donald Trump’s media company. According to a regulatory filing to the Securities and Exchange Commission (SEC), Truth Social reported a revenue of just over $4.1 million in its last operating year but incurred costs of $58.2 million, resulting in an operating loss of $15.96 million.
Shares in Trump Media & Technology Group (TMTG), the parent company of Truth Social, plummeted 21 percent on Monday, wiping billions off its value. Nunes, a former GOP California congressman, defended the company’s financial position, stating that despite the losses, they have no debt and $200 million in the bank. He emphasized their focus on building the company’s ecosystem and becoming less reliant on big tech.
Despite auditor BF Borgers expressing doubts about Truth Social’s ability to continue as a going concern, Trump reiterated the company’s financial stability, claiming to have $200 million in cash and zero debt. He praised the platform as a primary way to communicate with his followers and expressed confidence in its growth potential.
Political science professor Todd Landman highlighted the importance of attracting more users for Truth Social to succeed, drawing parallels to the early days of Amazon and Facebook. He emphasized the need for the platform to offer compelling content, functionality, and services to drive user engagement and profitability.
As Truth Social navigates its financial challenges, the company remains focused on expanding its user base and solidifying its position in the competitive social media landscape.