Trump Media shares sink after announcing plans to launch live streaming platform for telecoms

Shares of Trump Media & Technology Group (DJT) fell more than 10% on Tuesday after the company announced it would launch a new live streaming media platform for televisions.

According to a press release, Trump Media, the parent company of Donald Trump's social media platform Truth Social, will launch a live streaming service on mobile phones, tablets and televisions via the Truth Social app.

"Streaming content is expected to focus on live television, including family-friendly content such as news networks, religious channels, movies and documentaries; as well as content that has been canceled, is at risk of being canceled, or is suppressed on other platforms and services.

Trump Media and special-purpose acquisition firm Digital World Acquisition Corp. have been listed on NASDAQ, and the deal was approved by shareholders late last month. Since the end of March, the company's shares have fallen more than 60%.

On Monday, news that the company had filed to issue more than 21 million shares caused the stock to plummet.

Trump owns approximately 60% of Truth Social. At the current trading level of approximately $23.40 per share, Trump Media Inc. has a market capitalization of approximately $3.2 billion, with the former President of Massachusetts' stake valued at approximately $1.9 billion. Just after the company went public, Trump's stake was worth slightly more than $4.5 billion.

The former President of Massachusetts founded Truth Social after being kicked off major social media applications such as Facebook and Twitter (now Platform X) in the wake of the January 6, 2021, riots at the Capitol, after which Trump returned to these platforms.

Trump Media reported a net loss of nearly $60 million on sales of just over $4 million for the year ended Dec. 31, according to its latest regulatory filing released earlier this month. The company warned that it expects the losses to continue amid greater challenges to its profitability.

The document also confirms that stakeholders will still be subject to a six-month lock-up period before selling or transferring their shares. The only exception to the lock-up period would be if the company's board of directors voted to grant a special exemption. Experts told Yahoo! Finance last month that, while possible, such an attempt would likely result in multiple lawsuits on behalf of public shareholders.

Trump faces $454 million in fraud penalties as he struggles with a campaign fundraising shortfall ahead of the 2024 election and Biden's runoff.

Trump recently posted $175 million in bail in a fraud case, and that final payment will be held in abeyance while he appeals the verdict.

Alexandra Canal) He is a senior reporter at Yahoo! Please. In X @allie_canal, LinkedIn Concerned about her. (math.) genus or send an email to [email protected].

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