Adding to Donald Trump's woes – which include a scheduled arraignment in New York City on Tuesday in a Manhattan courtroom where a sealed indictment containing a reported thirty charges awaits him – a report from Forbes claims that he is now not nearly as rich as he was when he helped launch his Truth Social social media platform.
According to the report, Truth Social has been a flop and is in danger of collapsing, taking the former president's net worth down with it.
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On Sunday, the New York Times reported that the two entities tied to Truth Social that are attempting to merge are facing a September deadline to get SEC approval to avoid having to refund approximately $300 million to investors which could lead to a collapse.
According to Forbes, the Truth Social struggles are hitting Trump's worth hard.
"In December 2021, a group of big-money investors promised to inject $1 billion in cash into the venture — but only if they got a sweetheart deal," the report said.
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"By that point, shares were trading for $45 on the open market. But under the agreement, the new investors would be guaranteed a profit as long as the shares stayed above $10. When previously estimating the value of Trump’s stake, Forbes used that $10-per-share figure and came to $730 million.
"But things have changed."
Noting the failure of Truth Social to achieve its lofty goals, the report adds, "The fundamental problem is that barely anyone uses Truth Social. Before it launched, an investor presentation suggested the app would attract 81 million users by 2026. Now, over a year after going live, it has only an estimated 5 million. Given that Trump owns roughly 85 percent of the business, [the] former president’s stake probably adds up to about $180 million today. Even that might be too much."
All told, Forbes estimates Trump's net worth plummeted "from an estimated $3.2 billion last fall to $2.5 billion today.
As Forbes' Dan Alexander wryly noted, "If people continue to join at the current pace — and assuming that no one quits or dies —Truth Social will not hit its projected 81 million users until 2086. By that point, Trump would be 140 years old. A more likely outcome: Truth Social will join Trump Steaks, Trump University and GoTrump.com in the graveyard of failed Trump ventures."
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