Trump Media & Technology Group recently announced plans to launch a streaming TV platform that will feature news, film, and other content that the company claims other media outlets refuse to show. The venture comes after Trump Media began trading on the Nasdaq stock market, with its stock peaking at $79.38 per share before declining almost 70%. The stock, now trading at $23.32, has a market value of about $3.1 billion.
The primary asset of Trump Media is Truth Social, the social media service created by Donald Trump in 2022 after being banned from major platforms following the January 6 Capitol Hill attack. Trump Media aimed to create a “media powerhouse” with multiple platforms including social media and digital streaming. The company went public, raising $200 million, which will fund its plans for expansion. With an estimated 494,000 monthly active users in February, Trump Media still has a long way to go compared to giants like Facebook and Twitter.
Building an audience will be key to Trump Media’s success in attracting advertisers. Despite having revenue of $4.1 million last year, the company lost $58 million. Advertisers on Truth Social include groups selling Trump-related merchandise and patriotic gear. Trump Media’s streaming TV platform will first appear on the Truth Social app before moving to home TV streaming. The content will include news networks, religious channels, family-friendly content, and other content that may be suppressed on other platforms.
Conservative-leaning TV networks like One America News Network and Christian Broadcast Network already exist, alongside the Tucker Carlson Network. Trump Media’s stock price has been declining, hindering its ability to raise capital through secondary stock sales. The company saw an 18.4% drop in stock value after filing a regulatory document allowing the potential sale of millions more shares. Market analysts predict further declines in the stock price, making it essential for the company to find ways to recover value.
Aimee Picchi, the associate managing editor for CBS MoneyWatch, covers business and personal finance. With experience at Bloomberg News and other national outlets, she analyzes the challenges faced by Trump Media & Technology Group in building a successful media and technology company. The company’s financial performance, user base, and advertising partnerships will be crucial factors in determining its future success in a competitive media landscape.
