Trump Media shares fall after company announces plans to launch live TV streaming platform
Shares of Trump Media & Technology Group (DJT) fell 14% on Tuesday after the company announced the launch of a new live TV streaming platform.
According to a press release, Trump Media – the parent company of Donald Trump’s social media platform Truth Social – will launch the live streaming service on phones, tablets and televisions through the Truth Social app.
“Streaming content should focus on live TV, including news networks, religious channels, family content including movies and documentaries, and other content that has been canceled, is at risk of “be canceled or are removed on other platforms and services”, according to the press release.
Trump Media went public on Nasdaq after merging with special purpose acquisition company Digital World Acquisition Corp. under a deal approved by shareholders late last month. Stocks are down more than 60% since the end of March.
On Monday, the stock fell following news that the company had filed to issue more than 21 million shares.
Trump retains a roughly 60% stake in Truth Social. As of Tuesday’s closing price of $22.84 per share, Trump Media has a market capitalization of about $3.1 billion, giving the former president a stake worth about $1. 85 billion dollars. Just after the company’s public debut, Trump’s stake was worth just over $4.5 billion.
The former president founded Truth Social after being kicked off major social media apps like Facebook and Twitter, the platform now known as X, following the Capitol riots on January 6, 2021. Trump has since been reinstated on these platforms.
According to an updated regulatory filing released earlier this month, Trump Media reported sales of just over $4 million, while net losses reached nearly $60 million for the full fiscal year. ending December 31. The company warned that it expects losses to continue amid greater profitability challenges.
The filing also confirmed that stakeholders are still subject to a six-month lock-up period before selling or transferring shares. The only exception to the lock-up period would be if the company’s board of directors votes in favor of a special exemption. While possible, experts told Yahoo Finance last month that the attempt would likely result in multiple lawsuits from public shareholders.
Trump faces a $454 million fine for fraud and is struggling with a campaign fundraising deficit ahead of his 2024 election rematch against Biden.
Trump recently posted $175 million bail in the fraud case, which puts final payment on hold until he appeals the verdict.
Alexandra Canal is a senior reporter at Yahoo Finance. Follow her on @allie_canal, LinkedIn, and email her at alexandra.canal@yahoofinance.com.
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