NEW YORK: Trump Media & Technology Group (TMTG), founded by US President Donald Trump, is considering spinning off its social media platform Truth Social into a publicly traded company.
The company is in discussions with TAE Technologies and Texas Ventures Acquisition III about the proposed transaction, the company said last Friday.
Under the proposal, shares in the spun-off company would be distributed to eligible TMTG shareholders, after which the new entity would merge with a special-purpose acquisition company.
This would separate TMTG’s social media and digital media assets from its recently announced fusion energy venture, effectively splitting the company into two publicly traded businesses with distinct strategies.
The Truth Social-parent’s net loss widened to US$712.3mil in 2025 from US$400.9mil a year earlier, mostly reflecting unrealised losses from the company’s purchase of bitcoin and Cronos.
TMTG ended 2025 with about US$2.5bil in financial assets, more than triple the US$776.8mil it had a year earlier, the company said. Net sales edged up to US$3.68mil from US$3.62mil in 2024.
Founded by Trump and known for its Truth Social platform aimed at conservative audiences, TMTG has faced challenges scaling its media business amid competition from larger social networks and uneven user growth.
It is now seeking to reposition itself beyond its core Truth Social platform and tap investor interest in emerging energy technologies.
TMTG said no definitive agreement has been reached on the spin-off and discussions are ongoing. In December, TMTG agreed to merge with TAE in an all-stock deal valued at more than US$6bil, marking a pivot toward fusion energy and the creation of a publicly traded company focused on developing utility-scale power plants to help meet rising electricity demand, including from AI data centres.
TAE Technologies is a California-based private firm developing advanced nuclear fusion technology that has raised more than US$1bil from investors. — Reuters
