Trump Media, based in Sarasota, Fla., has just 36 employees and lost $58 million last year, according to filings. Online analytics firm Similarweb estimates that Truth Social's traffic is less than 1 percent of Reddit's traffic, a platform that generated $800 million in revenue last year.
But the stock market frenzy has pushed Trump Media's value to about $5.5 billion, surpassing the market capitalization of Macy's, Columbia Sportswear and Alaska Airlines, which each generate billions of dollars in annual revenue. ing.
The Washington Post shared with the Trump media the numbers it intended to highlight in the report, all of which were excerpted from the company's filings. Trump Media spokesperson Shannon Devine responded in a statement: “Truth Social has successfully launched as a publicly traded company, enthusiastically embraced millions of users, and expanded its audience, making it subject to ongoing legal targets for Washington Post partisan activists. It's no wonder they're doing this.'' Litigation over defamatory reporting against us would lead to these kinds of ridiculous blockbusters. ”
Trump Media sued the newspaper for defamation last year, alleging that the news organization falsely reported on allegations about its fundraising. A federal judge in Florida recently dismissed the case, but said he may amend the complaint if he believes Trump Media can make a viable case.
Trump is Trump Media's largest shareholder, holding 57.3% of the company's stock, or 78.7 million shares. The stock is worth about $3.2 billion based on Friday's closing price.
An “earn-out” provision would see Trump receive an additional 36 million shares if the price remains above $17.50 for 20 days, which could happen as early as April 26, meaning Trump's The total stock value will increase to $4.7 billion.
The six-month “lock-up” agreement prevents Trump from selling or transferring the stock until Sept. 25, or a few days before that if the stock price reaches a certain threshold. President Trump could ask the company's board to waive that requirement, but he has not yet done so. The lockup also applies to company executives and directors.
Three members of Trump Media's seven-member board received compensation in stock, cash, or both.
Trump Media CEO and President Devin Nunes received 115,000 shares worth approximately $4.6 million. Last year's salary was $750,000, but this year it has been increased to $1 million.
Nunes, a former Republican congressman from California, will also receive a one-time “remain bonus” of $600,000 this month. The bonus agreement Nunes signed says the money is intended to “ensure the continuity” of Trump Media's operations.
Director Eric Swider, who was CEO of the special acquisition vehicle that merged with Trump Media, and his Puerto Rican consulting firm, Renatus, will acquire approximately 153,000 shares, valued at $6.2 million, as part of the merger agreement. ) received.
Another board member, Kash Patel, a former Nunes aide who served on President Trump's National Security Council, received $130,000 last year as part of a consulting agreement with Nunes' firm Trishul. Ta. Patel also serves as “national security adviser,” according to the filing. [Trump] As a “civilian,” he receives compensation for his services from President Trump's “Save America” political action committee.
The remaining four board members are Robert E. Lighthizer, President Trump's former trade representative; Linda McMahon, President Trump's former head of the Small Business Administration. Louisiana attorney W. Kyle Green; Trump and his son Donald Trump Jr. were not paid last year, but the filing said the board may award them “stock as non-cash compensation from time to time.” ing.
One former board member, Dan Scavino Jr., a longtime Trump confidant who led the White House's social media efforts and is currently advising Trump's presidential campaign, lost control of his company last year. He received compensation of $240,000 through a consulting contract with Hudson Digital. Scavino will also receive a $600,000 retention bonus this month.
Trump Media also issued a $2.2 million “executive promissory note” to Mr. Scavino. The company gave similar promissory notes to other executives, which were automatically converted into stock on the day of the merger. The filing does not specify whether Mr. Scavino's notes were converted.
Trump Media Chief Financial Officer Philippe Juan received 490,000 shares worth $19.8 million. His salary last year was $337,500, and his salary jumped to $365,000 when the merger was completed. He last worked as a financial director for a health club chain.
Chief Operating Officer Andrew Northwall received 20,000 shares worth $812,000. He received $365,000 last year. Previously, he worked at Parler, the social network that became popular among the pro-Trump mob at the U.S. Capitol on January 6, 2021.
Juhan and Northwall will also receive a $600,000 retention bonus this month.
Other executives will receive bonuses totaling $1.24 million. Chief Technology Officer Vladimir Nowachki also received 45,000 shares worth $1.8 million, and General Counsel Scott Grubb received 20,000 shares worth $812,000. Ta. Mr. Glave served as deputy White House adviser during the Trump administration.
Trump Media co-founders Andy Liczynski and Wes Moss met Trump on “The Apprentice” and helped launch the business in 2021, with a combined total of 750 million yen through partner United Atlantic Ventures. 1,000,000 shares, valued at approximately $304 million.
Ark Global Investment II, the largest founding investor in Digital World Acquisition, which merged with Trump Media and went public, said in a filing that it has acquired 13.3 million shares worth about $539 million. He said he received it. A previous filing by Trump Media said Ark would receive 9.5 million shares.
Arc and Digital World are embroiled in a legal dispute over the number of shares owed by Arc. Arc is managed by Patrick Orlando, former CEO of Digital World.
Trump Media said it has helped finance its operations by issuing 19 convertible bonds since 2021 in exchange for loans with a total face value of more than $40 million. Owners of these notes, most of whom are not identified in the filing, can convert their unpaid principal amount into stock. The company said some of the notes have been amended or extended since they were issued, and there is an “ongoing disagreement” with some note holders over “different interpretations of certain terms.”
The company also said it issued convertible debt to an unnamed investor in the final quarter of 2023 “for working capital purposes” and that more than $1 million in debt remained outstanding by the end of the year.
The Trump Media deal is at the center of four ongoing lawsuits, all filed within the past two months.
- Trump Media and Digital World sues Ark and Orlando in Florida, alleging Ark and Orlando's “unreasonable and disturbing conduct” has “imposed significant costs” and caused “extensive reputational damage.” Ta.
- Mr. Lichinsky and Mr. Moss' United Atlantic Ventures sued Trump Media in Delaware, accusing Mr. Trump of forcing a “last-minute stock buyout” that diluted the company's stock. Trump is scheduled to be removed from office this month over that lawsuit.
- Ark is suing Delaware-based Digital World, its CEO and three directors, alleging a scheme to steal millions of shares from Orlando.
- Trump Media filed a lawsuit against Moss, Liczynski and Orlando in Florida, accusing the co-founders of mismanaging the company with a “toxic corporate culture” and seeking forced forfeiture of their stock. The Delaware judge in the United Atlantic Ventures case said at an April 1 hearing that he was “appalled” that Trump Media filed the lawsuit while the case was already unfolding.
Digital World spent $19.6 million on “legal investigations” last year, largely due to an $18 million settlement with the SEC, according to a Trump Media filing.
Last year, Trump Media also agreed to pay an unnamed law firm $500,000 for its services, according to the filing. In November, the company was issued $500,000 in convertible debt at a conversion price of $10 per share. That stake is now worth $2 million.
