Key facts
- Trump Media & Technology Group (TMTG) and TAE Technologies will not spin off Truth Social.
- The companies are continuing discussions regarding their merger.
- The merger is expected to close in the fourth quarter of 2026 or sooner.
- TMTG shares were down 1% in premarket trading.
Trump Media & Technology Group (TMTG) and TAE Technologies announced on Wednesday that they have decided not to proceed with a planned spin-off of Truth Social and other TMTG media assets into a new publicly listed company. The companies did not provide a specific reason for abandoning the spin-off plans.
Both entities stated that their primary focus remains on completing the previously announced merger between TMTG and TAE Technologies. They are targeting a closing date for this merger in the fourth quarter of 2026, or potentially sooner. Following the merger's completion, the board of directors for the combined company will evaluate strategic alternatives for the legacy business units, including TMTG's media assets, to enhance shareholder value.
Shares of TMTG experienced a slight decline, trading down around 1% in premarket trading. The company's stock has seen a significant drop of over 38% year-to-date. TMTG operates Truth Social, a social media platform, along with other ventures such as Truth+ and Truth.Fi.