Trump Media in discussions to spin off Truth Social

Trump Media & Technology Group said on Friday it is in discussions to spin off businesses including its social media platform, Truth Social, into a newly formed publicly traded company following the close of its previously announced merger with TAE Technologies.

The company described the talks as ongoing and cautioned that no definitive agreements have been reached.

Any potential transaction would be subject to regulatory and shareholder approvals, and there is no guarantee a deal will ultimately be completed.

Under a possible structure outlined by the companies, shares in the new entity would be distributed to existing Trump Media shareholders of record prior to the closing of the TAE merger.

The newly formed company would then merge with Texas Ventures Acquisition III, a special purpose acquisition company.

"Trump Media & Technology Group Corp., TAE Technologies, and Texas Ventures Acquisition III Corp.
today announced that they are engaged in ongoing discussions regarding a potential spin-off by
TMTG of businesses including Truth Social into a new publicly-traded company ("SpinCo") following the closing of the previously announced pending merger transaction between TMTG and TAE," the companies said.

Repositioning around nuclear energy

The discussions come as Trump Media seeks to reposition itself as a significant player in nuclear energy through its planned $6 billion merger with TAE.

Announced in December, the tie-up is aimed at capitalising on surging electricity demand linked to the rapid expansion of artificial intelligence infrastructure.

TAE is among the longest-standing companies pursuing commercial nuclear fusion, a technology that remains unproven at scale but has drawn growing government and private-sector backing.

Its investors include major corporations such as Alphabet, Chevron and Goldman Sachs.

The Trump administration has promoted advanced energy technologies, including fusion, as part of broader efforts to secure reliable power supplies for data centres and AI development.

Market reaction and DJT stock performance

Shares of Trump Media rose 1.6% to $11.15 in premarket trading following news of the potential spin-off.

Despite the uptick, the stock has lost more than half its value over the past year and trades far below the highs of $100 reached in 2022.

A separate listing for Truth Social could bring increased public market attention to the platform, which has become President Donald Trump’s primary communications channel.

He has used the service to announce policy positions, comment on military actions and, in some instances, preview economic data.

Truth Social's legacy

Trump previously said he would not sell his majority stake in the company after his electoral victory in 2024.

Regulatory filings later showed he transferred his holdings to a revocable trust of which he is the sole beneficiary.

Truth Social was launched after Trump was suspended from larger platforms, including Twitter and Facebook, following the January 6, 2021 attack on the US Capitol.

Trump Media has said it was founded to counter what it views as restrictions on free speech by major technology firms.

For now, investors are watching to see whether the proposed spin-off materialises and how it fits into the company’s broader strategy of pairing media assets with a high-stakes bet on fusion energy.