Feb 27 (Reuters) – Trump Media & Technology Group, founded by U.S. President Donald Trump, is considering spinning off its social media platform Truth Social into a publicly traded company.
TMTG is in discussions with TAE Technologies and Texas Ventures Acquisition III about the proposed transaction, the company said on Friday.
Under the proposal, shares in the spun-off company will be distributed to eligible TMTG shareholders, after which the new entity will merge with a special purpose acquisition company.
Such a transaction would separate TMTG’s social media and digital media assets from its recently announced fusion energy venture, effectively splitting the company into two publicly traded businesses with distinct strategies.
Founded by President Donald Trump and known for its Truth Social platform aimed at conservative audiences, TMTG has faced challenges scaling its media business amid competition from larger social networks and uneven user growth.
It is now seeking to reposition itself beyond its core Truth Social platform and tap investor interest in emerging energy technologies.
TMTG said no definitive agreement has been reached on the spin-off and discussions are ongoing.
The company’s shares were down more than 3% in afternoon trading.
In December, TMTG agreed to merge with TAE in an all-stock deal valued at more than $6 billion, marking a pivot toward fusion energy and the creation of a publicly traded company focused on developing utility-scale power plants to help meet rising electricity demand, including from AI data centers.
TAE Technologies is a California-based private company developing advanced nuclear fusion technology that has raised more than $1 billion from investors including Alphabet’s Google and Chevron.
The startup focuses on a form of fusion designed to produce electricity without releasing large amounts of neutron radiation, reducing radioactive waste.
(Reporting by Akash Sriram in Bengaluru; Editing by Jonathan Ananda)
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