Pack and relist? Trump’s media plans to spin off Truth Social into a new entity

Caixin News, February 28 (Editor: Ma Lan) The Trump family media group is considering divesting from social platform Truth Social, one of former President Trump’s most frequently used promotional platforms. Trump has been posting information on the platform, including policies, making it a globally watched news dissemination channel.

Trump Media & Technology Group announced on Friday that it is in ongoing discussions to spin off certain businesses, including Truth Social. The new company after the spin-off will become a publicly listed company.

This may be related to a previous acquisition by Trump Media Group of a fusion energy company. Two months ago, the group merged with TAE Technologies, a fusion energy company supported by Google, in a $6 billion deal.

Divesting Truth Social represents a new transformation for Trump Media, whose business has expanded from its original social media platform to cryptocurrency investments, and now to fusion energy.

Continuous Transformation Trump Media’s previous foray into cryptocurrency investment can be considered a failure. In late December last year, the company began issuing digital tokens to shareholders, but this did not boost Trump Media’s stock price and instead disappointed investors. This may be a key reason why Trump Media wants to pivot again.

Trump Media and TAE Technologies stated they hope to start building a nuclear power plant later this year, aiming to create the world’s first utility-scale fusion power plant to meet the growing energy demands of artificial intelligence.

According to Trump Media’s plan, if the spin-off proceeds smoothly, its businesses, including Truth Social, will merge with a publicly listed special purpose acquisition company called Texas Ventures III.

The potential spin-off will take place after the merger with TAE is completed, expected by mid-year. At that time, Trump Media-TAE will retain Trump Media’s balance sheet and fusion company’s technology. The plan will create two companies focused on different businesses, each with its own strategy.

According to the latest financial report, as of the first three months ending September 30, 2025, Trump Media Group reported a net loss of over $54 million. In comparison, in the same period in 2024, Trump Media’s net loss exceeded $19 million.