Donald Trump is soon to be a man without a platform. Again. He loses social media platforms like the rest of us lose socks. Truth Social has never worked out to Trump’s expectations. It was going to be the new Twitter and while he’s got four million followers on Truth Social, that is a mere drop in the bucket compared to the 88 million he had on Twitter. He doesn’t know why that is and neither does anybody else. It’s a great mystery.

What is no mystery, however, is how Truth Social came to be in the toilet. It started out as a business abstraction, a theory, far more than an actual business proposal. One shell company basically bought another shell company and it was smoke and mirrors time on Wall Street for a while. No more. It’s time to pay the piper and in true Trumpian fashion, there’s no money. Reuters:

The blank-check acquisition firm that agreed to merge with Donald Trump’s social media company failed to secure enough shareholder support for a one-year extension to complete the deal, people familiar with the matter said on Monday.

At stake is a $1.3 billion cash infusion that Trump Media & Technology Group (TMTG), which operates the former U.S. president’s Truth Social app, stands to receive from Digital World Acquisition Corp (DWAC.O), the special purpose acquisition company (SPAC) that inked a deal last October to take TMTG public. […]

Digital World needs 65% of its shareholders to vote in favor of the proposal to extend its life by 12 months for the move to become effective. By Monday evening, far fewer Digital World shareholders than those required had voted in favor, the sources said.

It’s been a financial shell game, like everything else Trump does. Never forget you are talking about a man who ran a cash business, a casino, into the ground. Here are the gory details of how Truth Social is about to become the social media version of Trump steaks.

Were the deal to be completed, TMTG [Trump Media and Technology Group] would receive $293 million that Digital World has on hand plus $1 billion committed from a group of investors in the form of a private investment in public equity (PIPE).

The PIPE is scheduled to expire on Sept. 20 unless the deal is completed. Investment bankers for Digital World have been reaching out to investors in the last few weeks to gauge their interest in extending the PIPE, a person familiar with the matter said.

It is unclear how TMTG is getting by without having access to Digital World’s funding. It raised $22.6 million through convertible promissory notes last year and an additional $15.4 million through bridge financing in the first quarter of this year. The agreement with Digital World caps the indebtedness that TMTG can assume prior to the deal closing at $50 million.

Digital World has said it believes TMTG will have “sufficient funds” until April 2023. TMTG said last week that Truth Social is “on strong financial footing” and would begin running advertisements soon.

Donald Trump also said last week that he was “really rich” and Truth Social was fine. Good. Glad to hear it. Would anybody like to lay odds that Truth Social will be dark, oh let’s say, by Halloween?

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  1. Oh, the funding problem could be solved in a snap. All it would take is for Donald to put out a fundraising appeal.

    But, then again, he’d lose that money to Truth Social.

    IF he actually turned over the money to Truth Social.

  2. I am still, after all these years, trying to figure out how trump ran a business in which the house ALWAYS WINS, a casino, into the ground. How is that even possible? F.F.S. the tribes run these damned things and make money.


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