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Trump’s net worth falls by $1 billion as his media stock tumbles

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Trump?s net worth falls by $1 billion as his media stock tumbles

Shares of former US president Donald Trump’s social network ‘Truth Social’  dropped drastically on Monday, April 1 after the company disclosed that it lost more than $58 million and generated very little revenue in 2023.

Trump is the company’s majority shareholder, and his net worth tumbled by more than $1 billion as a result.

 

In a regulatory filing on Monday, Trump Media said it lost $58.2 million in 2023, compared with a profit of $50.5 million in 2022.

The Truth Social owner generated just $4.1 million in revenue, although that was up from $1.5 million in 2022.

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Also, shares of Trump Media tumbled 21% Monday following the new filings, though they are still up nearly 200% so far this year.

Trump owns a commanding stake of 78.8 million shares in the newly public company. At Monday afternoon’s prices, that stake is now worth approximately about $3.8 billion. This represents a massive boost to Trump’s net worth, though it is down significantly from a peak of about $6.3 billion just last week.

The losses disclosed Monday are so severe that Trump Media’s accountants warned at the time they “raise substantial doubt about its ability to continue as a going concern,”

 

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That merger deal was completed last week, paving the way for Trump Media to receive approximately $300 million influx of cash. The company can now use those funds to pay down debt and, importantly, build out its infrastructure.

 



Source link: Linda Ikeji/