Former US President Donald Trump’s new social media company, Trump Media & Technology Group, has signed deals to raise $1 billion from investors before registering on the stock market.
Trump Media & Technology Group will launch an app called “Truth Social” in early 2022.
The idea for the new social media app was born after Trump was banned by Twitter and Facebook. Trump lost the presidential election in November 2020, but did not accept the election results. At the call of Trump, his supporters gathered on January 6 and raided the Congress building. Due to the posts he made during and after the raid, he was banned in many of the social media applications.
“$1 billion sends a message to tech giants that censorship and political discrimination are now ending,” Trump said.
“Our balance sheet shows that Trump Media & Technology Group will be in a strong enough position to fight the tech giants.”
When Trump announced that they will launch the application called Truth Social, he said, “The application will allow chatting without discrimination based on political ideology.”
The company, in a statement over the weekend, stated that it guaranteed a total investment of 1 billion dollars from different institutional investors, but did not give details about the investors. The company is estimated to be worth $4 billion today.
Although Trump made very controversial decisions and came under harsh criticism while in office, this initiative proved to have a very strong financial backing.
According to Reuters, many Wall Street firms refused to invest money in the venture, but some hedge funds, family businesses and high-income individuals supported the company.
89 million on Twitter, where Trump was banned for fear of “inciting more violence”; He had 33 million followers on Facebook and 24.5 million on Instagram.
From time to time, Trump also signals that he can run for president again in the 2024 elections.
The company will be subject to audit
Trump Media & Technology Group’s partnership with Digital World Acquisition is coming under control.
Last month, Democratic Senator Elizabeth Warren called on the relevant committees in Congress to launch an investigation into whether this partnership violated the law.
It has not yet been shared with the public that no action will be taken in this regard.
The app, called Truth Social, is scheduled to launch in the first quarter of 2022. A subscription video application will then be launched, with entertainment, news and podcasts.