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Twitter was losing money when Musk bought it, and it continued to lose afterward. I've heard it lost as much as 90% of its value. So it's no surprise that Truth Social is also losing money (but not to the extent that X has). But at least it's mostly cleaned up (I think - I don't use either social medium).
Quick reminder that TMTG issued a press release in October 2021, suggesting a valuation of 1.7 billion, once the merger with DWAC completed.
Well, it's been 2 years, DWAC returned half a billion of investor funds, changed CEOs and had a board member arrested for insider trading. No merger.
Undoubtedly, some got quite rich on dumping DWAC stock at the right time. Lots of household investors left holding the bag, but - what did they expect?
Those whom purchased stock in Digital World Acquisition Corporation when it was $175 or so are hurting now, with the value of the stock at close to $16. It is no wonder that this past September the shareholders' approved a one year delay in finalizing the proposed merger between the company and Trump Media and Technology Group.
The SEC filing was required to be filed by yesterday (Tuesday), so they just got in under the deadline. If no filing, any merger would have been off.
However, I do think the merger will not happen. As noted in this article:
"Trump Media lost $7.6 million on its operations in the first half of the year and interest cost them nearly $23 million, an increase of more than 10 times from all of last year. The company booked a $23.3 million loss from operations in 2022 on just $1.4 million in sales, though it recorded a $50.5 million profit after getting a boost from a change in the value related to its convertible notes."
Truth Social simply has not attracted the eyeballs necessary to sell ads and make a profit. The SEC filing was required, but it also serves as a protection against liability against the officials of Digital World if they knew that TS was able to shutter, but did not disclose beforehand the financial condition of TS.
Mr. Trump has posted only once on Twitter since Mr. Musk allowed him back on. However, Mr. Trump has an agreement with TS to not use other social platforms, although I read that Mr. Trump may re-post a TS posting on Twitter have a lapse of 6 or 8 hours. He has not done so thus far.
If TS closes, then Mr. Trump is free to return to Twitter full-time. I think on Twitter he had a following of some 80 million, while TS has struggled to have even 2 million users each month. As such, it may be beneficial for his campaign to simply let TS fold.
Those whom purchased stock in Digital World Acquisition Corporation when it was $175 or so are hurting now, with the value of the stock at close to $16.
The $175 price was a spike on the initial offering in October 2021. Anyone who bought at that price (very few did; hence the term "spike") and is still holding the stock, deserves to lose every penny. You could have still unloaded it for around $100 as late as February 2022.
Personally I bought at $47.3799 on 10/21/21 and sold the very next day at $113.1831. I knew I was literally shooting dice and I don't feel bad for the sucker who bought my shares on 10/22/21, just as nobody feels bad for me (I assume) when I make a bad or unlucky decision in the stock market.
Did you leftists lose money over Truth Social? If so, why do y'all care? This isn't the government propping itself up. In the real world, some businesses fail and others succeed. Geesh, you'd think that these leftists were personally invested in Truth Social the way they are behaving here. Such bitterness and anger
Location: Was Midvalley Oregon; Now Eastside Seattle area
13,073 posts, read 7,511,991 times
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Quote:
Originally Posted by prospectheightsresident
Did you leftists lose money over Truth Social? If so, why do y'all care? This isn't the government propping itself up. In the real world, some businesses fail and others succeed. Geesh, you'd think that these leftists were personally invested in Truth Social the way they are behaving here. Such bitterness and anger
JMO, its not so much the non-trumpers didn't lose money over TS, but that the Trumpers will blame them for TS failure.
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