The former president’s fortune dropped from an estimated $3.2 billion last fall to $2.5 billion today. The biggest reason? His social media business, once hyped to the moon, has come crashing down, erasing $550 million from his net worth—so far.
Donald Trump was eager for revenge. Nine months earlier he had been banned from Twitter, depriving him of his primary means of communicating with his followers. His solution? Build his own Twitter. Dubbed Truth Social, it had the potential to boost Trump’s fortune by billions. As soon as he announced the plan, supporters piled into Truth Social’s special purpose acquisition company, or SPAC. Shares of the SPAC, Digital World Acquisition Corp.
The hype never lined up with reality. In December 2021, a group of big-money investors promised to inject $1 billion in cash into the venture—but only if they got a sweetheart deal. By that point, shares were trading for $45 on the open market. But under the agreement, the new investors would be guaranteed a profit as long as the shares stayed above $10. When previously estimating the value of Trump’s stake,But things have changed.
That still seems absurdly high. The fundamental problem is that barely anyone uses Truth Social. Before it launched, an investor presentation suggested the app would attract 81 million users by 2026. Now, over a year after going live, it has only an estimated 5 million. Given that Trump owns roughly 85% of the business and Twitter is worth an estimated $42 per user, the former president’s stake probably adds up to about $180 million today.
Even that might be too much. Truth Social is adding an estimated 100,000 users per month. If people continue to join at the current pace—and assuming that no one quits or dies—Truth Social will not hit its projected 81 million users until 2086. By that point, Trump would be 140 years old. A more likely outcome: Truth Social will join Trump Steaks, Trump University and GoTrump.com in the graveyard of failed Trump ventures.
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