Just six months after the launch of the platform, which has seen modest traffic, worrying signals are mounting about the financial health and prospects of Donald Trump’s social network, Truth Social.
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Fox Business Network reported Thursday that the company stopped paying its host RightForge and amassed a slate that now totals $1.6 million.
When asked by AFP, the parent company of Truth Social, Trump Media and Technology Group and RightForge, they did not respond.
Additionally, TMTG’s merger with publicly traded vehicle Digital World Acquisition Corp (DWAC), which should allow it to raise fresh cash, is slow to materialize 10 months after its announcement.
On Thursday, DWAC released the notice of its Sept. 6 Extraordinary General Meeting, asking shareholders to confirm the postponement of the deadline for completion of this merger by one year to Sept. 8, 2023.
They warn that without a positive vote, the company “would be forced to disband.”
If successful, the merger is expected to bring about $1.25 billion into TMTG, although some investors may still exit and reduce turnover.
According to financial statements released Tuesday, DWAC had just $3,000 in available cash at the end of June, with the amount raised on the exchange pending the merger.
DWAC is under investigation by US federal agencies, who have submitted their evidence to a grand jury for a possible criminal trial. The company is also under investigation by the SEC.
Launched at the end of February, Truth Social aims to be an alternative to the major social networks, notably Twitter, from which Donald Trump has been suspended since early January 2021, with the leitmotif of freedom of expression.
But six months after its debut, the platform appears only at number 30 among social network applications in the ranking of downloads on iPhone published by Apple.
According to the Statista database, the app is only downloaded around fifty thousand times a week.
The former US President’s account has 3.91 million followers on Truth Social, but the number remains a far cry from his 79.5 million followers on Twitter at the time of his suspension.
DWAC was down 2.42% on Wall Street on Thursday. The stock’s value has fallen 71% since its high for the year in early March.