This week, Truth Social was dealt another blow as its trademark application was denied on Thursday for being too similar to another social app called "Vero - True Social."įurther illuminating the social platform's financial woes, Fox Business Network reported on Thursday that Truth Social is locked in a bitter battle with its vendor, RightForge, and is accused of stiffing the hosting service out of $1.6 million in contractually obligated payments. "If President Trump becomes less popular or there are further controversies that damage his credibility or the desire of people to use a platform associated with him, and from which he will derive financial benefit, TMTG's results of operations, as well as the outcome of the proposed Business combination, could be adversely affected," the filing read.ĭigital World's stock has plunged more than 75 percent since its peak in March - from a high of $97.54 a share to $27.52 each - and in a recent SEC filing the company reported it lost $6.5 million in the first half of the year.
8, until next year, citing concerns over the former president's reputation potentially impacting business. In another filing, Digital World sought shareholder approval to delay the merger, set to take place Sept. In an SEC filing earlier this month, Digital World said it had "neither engaged in any operations nor generated any revenues to date" as its sole purpose was to prepare to take Truth Social public. SPACs have no other commercial operations. SPACs like Digital World are companies formed either to raise funds through an initial public offering or for the purpose of merging with an existing company. The future of the former president's 10-month-old social media platform, Truth Social, is on uncertain ground as the app faces huge financial losses and is accused of shorting its vendors amid Donald Trump's continued legal controversies.Ī planned merger between the Trump Media & Technology Group (TMTG), the business that created the Truth Social platform, and the special purpose acquisition company (SPAC) Digital World Acquisition Corp, has been postponed indefinitely as the Securities and Exchange Commission investigates the platform's business dealings.
Truth Social is accused of stiffing a vendor out of more than $1 million in contractually obligated payments. Christoph Dernbach/picture alliance via Getty ImagesĪ company seeking to merge with Truth Social cited Trump's reputation as an "important factor" to its financial success in an SEC filing.Īs Trump contends with ongoing legal battles, Digital World said its financial footing "could be adversely affected." A phone displaying Donald Trump's Truth Social app in the Apple App Store.
0 kommentar(er)
