SARASOTA, Fla. (AP) — Trump Media and Technology Group, the owner of former President Donald Trump’s social networking site Truth Social, lost more than $16 million last quarter, along with a decline in revenue, according to its earnings report Friday.
For the three-month period that ended June 30, the company posted a loss of $16.4 million, about half of which was legal expenses related to its merger with a company called Digital World Acquisition Corp., which was essentially a pile of cash looking for a target to merge with. It’s an example of what’s called a special purpose acquisition company, or SPAC, which can give young companies quicker and easier routes to getting their shares trading publicly.
Trump Media said it also incurred $3.1 million of technology consulting and software licensing expenses, mainly related to its software licensing agreement to power its new TV streaming service called Truth+.
Revenue was $836,900, down 30% from $1.2 million a year earlier.
Truth Social said it has zero debt and “believes it has sufficient working capital to fund operations for the foreseeable future.”
Shares climbed 18 cents to $26.39 in after-hours trading Friday.