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Trump Media explores spinoff of Truth Social into separate public company

share-iconPublished: Saturday, February 28 share-iconUpdated: Saturday, February 28 comment-icon1 hour ago
Trump Media explores spinoff of Truth Social into separate public company

Credited from: CBSNEWS

  • Trump Media & Technology Group plans to explore spinning off Truth Social.
  • The proposed spinoff would separate its social media assets from a fusion energy merger.
  • Shareholders would receive shares in the new entity post-spinoff.
  • The company reported widening losses and seeks to attract new investments.
  • Discussions with TAE Technologies and Texas Ventures are ongoing.

Trump Media & Technology Group (TMTG), founded by former President Donald Trump, has announced that it may spin off its social media platform Truth Social into a distinct publicly traded entity. This plan is linked to a $6 billion merger with TAE Technologies, aimed at separating TMTG's digital media operations from its venture into fusion energy, according to CBS News and Reuters.

As part of this proposed spinoff, shareholders of TMTG would receive shares in the new Truth Social entity before it merges with Texas Ventures Acquisition III, a special purpose acquisition company formed specifically for mergers. The shift is intended to create two separate public companies, each focusing on distinct sectors, reports India Times and Reuters.

Despite its strategic maneuvers, TMTG has encountered significant challenges in expanding its media presence, facing fierce competition from larger networks and issues with user growth. The company revealed a widening net loss of $712.3 million for 2025, driven in part by unrealized losses linked to its prior bitcoin investments, according to India Times.

The discussions around the spinoff are ongoing, and TMTG has made it clear that no definitive agreement has been finalized yet. This potential reorganization aims to reposition the company to attract investor interest in emerging technologies, particularly within the energy sector, if completed, as mentioned in CBS News and India Times.

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