Worrying signals about the financial health and prospects of former US President Donald Trump’s social network, Truth Social, are mounting, just six months after the launch of the modestly trafficked platform.
Fox Business Network reported on Thursday that the company had halted payments to its host, RightForge, and racked up a slate that now stands at $1.6 million.
Truth Social reportedly failed to honor its bills
Asked by AFP, the parent company of Truth Social, Trump Media and Technology Group (TMTG), did not respond. “RightForge helped build the foundation of Truth Social and will continue to support President Trump in his endeavors,” commented the company to AFP.
Asked by AFP, a spokesperson for RightForge declined to comment on allegations that Truth Social failed to honor its bills. In addition, the merger of TMTG with the listed vehicle Digital World Acquisition Corp (DWAC), which should allow it to receive fresh money, is slow to materialize, 10 months after its announcement.
Thursday, DWAC published the notice of convocation to its extraordinary general meeting, on September 6, during which the shareholders will be called upon to validate the postponement by one year of the deadline for achieving this union, to September 8, 2023. They warn that, in the absence of a favorable vote, the company “would be forced to dissolve”.
If successful, the merger is expected to inject around $1.25 billion into TMTG, although some investors may still opt out and reduce the envelope. According to financial statements released on Tuesday, DWAC only had $3,000 in available cash at the end of June, the amount raised on the stock market being blocked pending the merger.
Investigations
DWAC is under investigation by US federal authorities, who have submitted their evidence to a grand jury for a possible criminal trial. The company is also targeted by an investigation by the American stock market policeman, the SEC.
Another pitfall for the media group of the former head of state, still a favorite of bookmakers for the 2024 ballot, the United States Patent and Trademark Office (USPTO) refused TMTG registration of the name Truth Social.
In an opinion issued in early August but noted Thursday by lawyer Josh Gerben, an intellectual property specialist, the USPTO justifies its decision by the fact that there are already two companies with similar names (The Truth Network and Vero – True Social).
Launched at the end of February, Truth Social aims to be an alternative to the major social networks, Twitter in particular, from which Donald Trump has been suspended since the beginning of January 2021, with freedom of expression as its leitmotif.
30th position of applications
But six months after its debut, the platform appears only in thirtieth position of social network applications in the ranking of downloads on iPhone, published by Apple.
According to the Statista database, the app is only downloaded about fifty thousand times per week. It is not yet available on the Android operating system, which equips nearly 3 billion phones.
The former US president’s account has 3.91 million followers on Truth Social, but the figure remains far from his 79.5 million followers on Twitter at the time of his suspension. DWAC lost 2.42% on Wall Street on Thursday. The value of the title has melted by 71% since its peak of the year, at the beginning of March.
