Trump Media in talks to spin off Truth Social
What's the story
Trump Media & Technology Group (TMTG), the company founded by US President Donald Trump, is considering a major business restructuring. The firm is in talks with TAE Technologies and Texas Ventures Acquisition III over the potential spinoff of its social media platform, Truth Social. If successful, this would separate TMTG's social and digital media operations from its recently announced fusion energy venture into two publicly traded entities.
Business separation
Proposed spinoff would create 2 distinct publicly traded companies
The proposed spinoff would create two distinct publicly traded companies, each with its own focus and strategy. Shares in the new social media company would be distributed to eligible TMTG shareholders. After that, the new entity would merge with a special purpose acquisition company (SPAC) to complete the listing process.
Financial overview
TMTG's net loss surged in 2025
TMTG reported a sharp increase in its net loss for 2025. The company posted a net loss of $712.3 million, compared to $400.9 million the previous year. This was mainly due to unrealized losses from its Bitcoin and Cronos purchases. Despite this, TMTG's financial assets grew significantly, ending 2025 with around $2.5 billion, more than tripling from the previous year's $776.8 million.
Market competition
Llooking to expand beyond its core platform
TMTG has struggled to grow its media business due to stiff competition from larger social media platforms and uneven user growth. The company is now looking to expand beyond its core platform and attract investors by venturing into emerging energy technologies. However, no definitive agreement has been reached on the spin-off yet as discussions are still ongoing between all parties involved.
Fusion energy venture
A merger with TAE Technologies in December
In December, TMTG agreed to a merger with TAE Technologies in an all-stock deal worth over $6 billion. This marked the company's entry into the fusion energy sector and aimed at creating a publicly traded company focused on building large-scale power plants. These facilities are expected to meet rising electricity demand, including from AI data centers.