Trump Media & Technology Group (TMTG) announced that it is in active discussions to spin off its social media platform, Truth Social, into a separate, publicly traded company.
This move follows a major strategic pivot for TMTG, as it prepares to close a $6 billion merger with TAE Technologies, a leading nuclear fusion energy firm. The spinoff is intended to separate the company’s “legacy” media assets from its new focus on high-stakes energy technology.
The Proposed Spinoff Structure
While no definitive agreement has been reached, the proposed plan follows a “SPAC-on-SPAC” style of transition:
- Distribution of Shares: Eligible TMTG shareholders would receive shares in a newly formed entity (tentatively called “SpinCo”) before the TAE merger officially closes.
- New Public Listing: This new “SpinCo” would then merge with Texas Ventures Acquisition III, a Cayman Islands-based Special Purpose Acquisition Company (SPAC), to become its own publicly traded stock.
- Pure-Play Strategy: The goal is to create two distinct companies: one focused on nuclear fusion energy (to meet AI data center demand) and one focused on social and digital media.
TMTG’s 2025 Financial Performance
The news comes alongside TMTG’s latest financial filings, which show a company undergoing a massive transformation but facing significant losses.
| Metric | 2025 (Full Year) | 2024 (Previous) | Change |
| Net Loss | $712.3 Million | $400.9 Million | +78% |
| Total Assets | $2.5 Billion | $776.8 Million | +222% |
| Net Sales | $3.68 Million | $3.62 Million | +1.6% |
- The Loss Factor: The widening loss was attributed primarily to unrealized losses from the company’s treasury purchases of Bitcoin and Cronos.
- Cash Position: Despite the losses, TMTG’s financial assets tripled in 2025, largely due to successful capital raises and the appreciation of its digital asset holdings.
Why Spin Off Truth Social?
Industry analysts suggest several reasons for President Trump’s team to separate the media platform:
- AI Energy Focus: TMTG is pivoting toward fusion energy to capitalize on the massive electricity demands of the AI revolution. Nuclear fusion is seen as a more stable, long-term institutional play than social media.
- Market Valuation: Truth Social has struggled to scale its revenue (less than $4M in annual sales) despite having nearly 12 million subscribers. A separate listing might attract “pure-play” media investors who aren’t interested in energy technology.
- Regulatory Distance: Separating the president’s primary communication channel into a different corporate entity could provide a layer of insulation for the broader TMTG-TAE energy business as it seeks government energy contracts.
Stock Market Reaction
Following the announcement on Friday, TMTG shares (trading as DJT) rose 1.9% to $11.17 in premarket trading. However, the stock remains far below its 2022 highs, as investors weigh the potential of the fusion energy merger against the continued losses from the media segment.
