Grifty MacGriftFace
By CNN:
That long-delayed deal was completed last week, paving the way for Trump Media to receive an influx of approximately $300 million in cash. The company can now use those funds to pay down debt and, importantly, build out its infrastructure.
“I believe the $300 million of cash should remove this ‘going concern’ risk,” said Matthew Kennedy, senior IPO strategist at Renaissance Capital.
Even though Trump Media is losing money and generating scant revenue, Wall Street has valued the company by as much as $11 billion based on the stock’s closing price Friday, according to Renaissance Capital.
While Trump Media made just $4.1 million in revenue in 2023, rival X (formerly known as Twitter) raked in more than 100 times that much — $665 million — in 2013, ahead of its initial public offering in November 2013. Twitter also generated just over $5 billion in revenue in the final year before it was taken private by Elon Musk.
The problem for Trump Media is its main product — Truth Social — is shrinking.
Monthly active US users on iOS and Android plunged in February to 494,000, down 51% year-over-year, according to Similarweb. By comparison, X has 75 million monthly active US users. Even Threads has more than 10 times as many users as Truth Social, according to Similarweb.
“2024 is the make-or-break year for this company,” said Kennedy. “For TMTG the thing that matters now is getting in front of the cash cannon that is the 2024 presidential election. And the company does have one notable advantage. Trump-backed super PACs have raised millions. Where do you think they’ll spend their digital ad buckets?”
