President Trump’s media company is considering spinning off its money-losing social media platform, Truth Social, into a separate publicly-traded shell company company, it said on Friday.
The plan would involve the president’s company, Trump Media & Technology Group, to merge Truth Social with a recently formed, cash-rich special purpose acquisition company.
The announcement of the possible spin off came just months after Trump Media said it would merge with TAE Technologies, a decades-old fusion power company, in a $6 billion all-stock deal to create one of the world’s first publicly traded nuclear fusion companies. That deal is expected to close some time this year.
Truth Social, which has lost money since it launched as Trump Media’s original product, has failed to gain significant market share or advertisers. It serves mainly as a platform for Mr. Trump to communicate policy proposals with the world and air his political grievances.
In a news release on Friday, Trump Media said the spinoff would “create shareholder value through the creation of pure play companies, each with distinct strategies.” In March 2024, Trump Media went public by completing its own merger with a cash-rich SPAC.
The announcement named Texas Ventures Acquisition III, a Cayman Islands-based SPAC, as the company with which Truth Social would be merged. Texas Venture went public in April and raised $200 million.
Last fall, a company affiliated with Yorkville Advisors, which has been advising Trump Media on a number of deals, acquired a significant equity stake in the SPAC and became its official sponsor. In the process, control of the SPAC was transferred to affiliates of Yorkville, which is based in New Jersey.
SPACs are shell companies that raise money by going public in anticipation of finding a company to acquire. Over the past decade, SPACs have been in and out of favor with investors on Wall Street.
Mr. Trump is the largest shareholder of his media company, owning about 115 million shares in a trust controlled by his eldest son, Donald Trump Jr. In a spinoff, current shareholders of a company typically received shares in the newly-created entity.
The announcement on Friday provided scant details on how many shares Trump Media’s stockholders would received if the deal were to occur.
Mr. Trump’s media company, based in Sarasota, Fla., has only a few dozen full-time employees and has recorded tens of millions of dollars in losses in recent years. The company has experimented with a number of business ventures including sponsoring a number of Truth Social-branded exchange trade funds or ETFs, a streaming service, called Truth+, and investing inBitcoin.
Trump Media’s latest financial report, in November, showed it holding assets it valued at more than $3 billion, but it posted a net loss of nearly $107 million for the first nine months of 2025 on sales of less than $3 million.
Company representatives did not immediately respond to questions about the potential spinoff. The company’s news release said that discussions were continuing and that no decision had been made about the deal.
Shares of Trump Media were largely unchanged on the news. The stock is trading around $11 a share as of late Friday morning and is down 17 percent on the year. Shortly after it went public, the stock traded at around $60 a share.
Stacy Cowley is a Times business reporter who writes about a broad array of topics related to consumer finance, including student debt, the banking industry and small business.
The post Trump Media Explores Spinning Off Truth Social appeared first on New York Times.
