Why Trump’s digital media company is different from other money-losing startups – By Devin Coldewey (Techcrunch) / April 1, 2024
Former president Donald Trump’s digital media company is losing money, and lots of it. But why is that any different from other “startups,” which often struggle to post a profit for years, if they ever do?
There are a couple reasons.
First, as a recap: Trump Media and Technology Group recently merged with Digital World Acquisition Company in a SPAC, the ill-starred financial instrument that, more often than not, represents a last-ditch option for a substantial cash infusion. The company is on the NASDAQ as, predictably, $DJT.
An important part of going public is revealing your finances to all the world, and TMTG recently filed its first quarterly financial report with the SEC that everyone can look at and analyze. The financial press is having a field day, but the upshot is that TMTG is losing a lot of money and generating next to none. Specifically, the company lost $58 million on only $4 million in revenue.
