Truth Social lost $58 million last year. Here’s who made money anyway.

Truth Social lost 58 million

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Despite only generating $4 million in revenue last year, which is comparable to the earnings of an average McDonald’s franchise in the United States, former President Donald Trump’s social media company, Trump Media & Technology Group, remains active.

Awarded Trump

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The company, which operates Truth Social, has awarded Trump a share package valued in the billions and has compensated its executives with millions of dollars in salaries, bonuses, and stock, as reported in documents submitted to the Securities and Exchange Commission.

Trump Media

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Trump Media, headquartered in Sarasota, Florida, operates with a modest staff of 36 employees and reported a $58 million loss last year, according to official filings.

800 million

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Despite Truth Social’s traffic being less than 1% of Reddit’s, which generated $800 million in revenue last year, a surge in stock market interest has inflated Trump Media’s valuation to approximately $5.5 billion.

Market worth

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This places the company’s market worth above that of established entities like Macy’s, Columbia Sportswear, and Alaska Airlines, all of which rake in billions in revenue annually.

Washington Post

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The Washington Post provided Trump Media with the specific figures featured in this report, all sourced from the company’s filings.

Spokeswoman Shannon Devine

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Trump Media spokeswoman Shannon Devine responded in a statement: “Truth Social just successfully launched as a public company, with a committed and expanding audience of millions of users, so it’s no surprise the partisan activists at The Washington Post — already the target of ongoing legal action for its defamatory reporting on us — would gin up this sort of ridiculous hit piece.”

Defamation lawsuit

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Last year, Trump Media filed a defamation lawsuit against The Post, alleging that the news outlet inaccurately reported on claims related to its financial matters.

Dismissed the case

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Recently, a federal judge in Florida dismissed the case; however, the judge indicated that Trump Media could revise its complaint if it believes it can present a valid claim.

Largest shareholder

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As Trump Media’s largest shareholder, Trump owns 57.3% of the company, equivalent to 78.7 million shares valued at approximately $3.2 billion based on the stock’s recent closing price.

36 million shares

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With an “earnout” provision in place, Trump could potentially acquire an additional 36 million shares if the stock price remains above $17.50 for 20 consecutive days, possibly by April 26, increasing his total stake to $4.7 billion.

Lockup

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A “lockup” agreement restricts Trump from selling or transferring his shares until September 25, unless certain conditions are met.

Request a waiver

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While Trump has the option to request a waiver from the company’s board, he has not done so yet. This lockup period also applies to the company’s executives and board members.

Seven members

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Among the seven members of Trump Media’s board of directors, three individuals have been remunerated with a combination of stock, cash, or both.

4.6 million

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Devin Nunes, serving as Trump Media’s CEO and president, was granted 115,000 shares valued at approximately $4.6 million. His annual salary rose from $750,000 last year to $1 million this year.

Retention bonus

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Additionally, Nunes, a former Republican congressman from California, is set to receive a lump-sum “retention bonus” of $600,000 this month. The bonus agreement, signed by Nunes, states that the funds are intended to ensure the ongoing stability of Trump Media’s operations.

Eric Swider

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Eric Swider, a board member and former CEO of the special purpose acquisition company that merged with Trump Media, received 153,000 shares worth $6.2 million.

Kash Patel

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Kash Patel, another board member, received $130,000 last year for consulting through his company Trishul and serves as a national security adviser to Trump.

Unpaid

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Other board members were unpaid last year, except for Dan Scavino Jr., who received $240,000 through his company Hudson Digital and will get a $600,000 retention bonus. Scavino also received a $2.2 million executive promissory note from Trump Media.

Trump Media’s CFO

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Trump Media’s CFO, Phillip Juhan, obtained 490,000 shares valued at $19.8 million and saw his salary increase from $337,500 to $365,000 post-merger. COO Andrew Northwall received 20,000 shares worth $812,000 and a $365,000 salary.

Other executives

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Both Juhan and Northwall will receive $600,000 retention bonuses. Other executives, including CTO Vladimir Novachki and general counsel Scott Glabe, will receive bonuses totaling $1.24 million, with Novachki receiving 45,000 shares worth $1.8 million and Glabe receiving 20,000 shares worth $812,000.

Co-founders

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Trump Media co-founders Andy Litinsky and Wes Moss, who initiated the business in 2021 after meeting Trump on “The Apprentice,” collectively obtained 7.5 million shares through their partnership, United Atlantic Ventures, valued at around $304 million.

Arc Global Investments II

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Arc Global Investments II, the primary founding investor in Digital World Acquisition, the company that merged with Trump Media, received 13.3 million shares worth approximately $539 million, leading to a legal dispute with Digital World’s former CEO Patrick Orlando over the number of shares owed.

40 million in loans

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Trump Media utilized 19 convertible notes since 2021 to secure over $40 million in loans, allowing holders to convert unpaid principal into stock.

Disagreements

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The company faced disagreements with a noteholder regarding terms interpretation and issued additional convertible notes to unnamed investors for working capital in the last quarter of 2023, with over $1 million still outstanding by year-end.