As highlighted recently by NBC News, an accounting firm is questioning the foundational, long-term stability of a Trump-branded media business that is behind the former president’s knock-off social media platform, Truth Social.
Trump himself uses that site, but its overall rates of use still pale in comparison to usage rates for major social media platforms.
After extensive delays in which even federal investigations moved forward, an originally private Trump-branded company responsible for it all finally completed a merger with a company known as a blank check company (or more formally a special purpose acquisitions company). The merger sent the Trump operation public, ultimately providing new funding opportunities for the business. But the stock price for the newly combined operation saw significant declines on Monday.
And reportedly, the Trump business suffered through more than $58 million in losses in 2023. Colorado accounting firm BF Borgers CPA PC said via filings made with federal financial authorities that the losses at Trump’s company “raise substantial doubt about its ability to continue as a going concern.” The remarks came before the newly merged company started its trading on the stock market but after the merger got approval from shareholders in the original blank check company, Digital World Acquisitions Corp. (DWAC).
Predictably, a lot of the public discussion around actually investing in (formerly) DWAC has involved Trump supporters themselves putting financial support behind the company. Trump holds a massive swath of shares in the newly merged company, though reports point to restrictions on the former president actually selling off his holdings — and making an income — for half a year. The cited restrictions made it difficult for Trump to turn to his holdings in the social media-focused company when recently facing an originally huge financial burden required for a bond holding off collections — for now — on nearly half a billion dollars in penalties.
