NEW YORK — Trump Media & Technology is struggling financially and shifting gears. Monday,in a call with investors,the firm said it's pulling back from some expansions to refocus on core media . Exclusive access to former President Donald Trump's content is the new priority.
Truth Social launched as a free speech haven post-Trump's social media bans. But now, with Twitter and Facebook accounts restored over three years ago,its role has shifted. It's more like a secondary press office for Trump, giving updates on U.S . foreign policy and economic issues.
Stock performance for Trump Media has been weak. The company dabbled in online betting and finance,but those ventures didn't pan out. So,back to basics. A new service lets subscribers get Trump’s posts faster, for a fee .
Kevin McGurn,the new CEO,said several high-speed trading firms are already on board, paying $60,000 to $100,000 monthly. “We’re in the early innings,” he noted . Market potential extends beyond traders to data centers,news outlets. Ethical concerns? McGurn shrugs them off, saying other platforms offer similar services.
Wall Street traders want fast White House news; ten firms have subscribed since launch. This could mean big bucks for Trump Media. Monthly subscriptions might bring in up to $7 million, potentially $12 million annually. Far more than last year's total revenue.
Trump Media needs cash badly. Losses over $1 billion since last year,another $238 million lost last quarter alone. Falling bitcoin values hurt finances.
The company depends on external funds,raising $1 billion from lenders who can demand early repayment by November 30. This deadline aligns with midterm elections,which could impact Trump Media if Democrats take Congress. Senator Elizabeth Warren and others have plans for investigations if they gain power.
Future of Trump Media is murky,especially as Trump’s presidency winds down. His draw fuels Truth Social. What happens when he leaves office? Truth API includes posts from others,but none have Trump's 13 million followers. Donald Trump Jr. has 7.5 million; Kash Patel and Robert F. Kennedy Jr . may lose steam post-Trump era.
Despite media focus,McGurn keeps an interest in nuclear fusion,still not commercially viable. The U.S. Department of Energy is prioritizing fusion,which might help prospects.
Investor confidence shaky. Stock hit $62 after public debut in 2024,now it's in single digits. Tuesday,shares closed at $9.08,down 3.3%. Where does this leave them…?
