The former president’s fortune has fallen from an estimated $3.2 billion last fall to $2.5 billion now. What is the biggest reason? His social media business, once much touted, has flopped, wiping out $550 million from his net worth so far.
in October 2021 Donald Trump was bent on revenge. Nine months ago, he was banned from Twitter, depriving him of his main means of communication with his followers. His solution? Build your own Twitter. The program, called Truth Social, had the potential to boost Trump’s fortune by billions of dollars. As soon as he announced the plan, his supporters flocked to Truth Social’s special acquisition vehicle (SPAC). SPAC (Digital World Acquisition Corp.) stock soared from $10 to $175 in two days. This meant that the business was worth $22 billion, and his interest amounted to $19 billion.
The hype never matched reality. In December 2021, a group of big-money investors pledged to inject $1 billion in cash into the venture, but only if they could get a good deal. At that time, the stock was trading at $45 on the open market. But under the agreement, new investors will be guaranteed a profit as long as the stock remains above $10. When we previously estimated the value of Trump’s stock, forbes Using the $10 per share figure, it came out to $730 million.
But things have changed. Even President Trump’s biggest fans aren’t as excited about “Truth Social” as they used to be. The Department of Justice, the Securities and Exchange Commission, and the Financial Regulatory Authority are all investigating the business, looking into trading activity and communications between the SPAC and Mr. Trump’s businesses. Meanwhile, the SPAC, which fired its chief executive last month, only has until Sept. 8 to complete its merger. Further complicating matters, Elon Musk bought Twitter in October and quickly reversed bans against Trump and other right-wing figures. This undermined his argument that the world needed a more conservative version of Twitter. President Trump’s SPAC stock is now trading at $14 per share, down 92% from its high, a level that suggests the former president’s business is worth $1.2 billion.
That still seems unreasonably high. The fundamental problem is that very few people are using Truth Social. A pre-release investor presentation suggested that the app would reach 81 million users by 2026. However, more than a year after its launch, it only has an estimated 5 million users. Given that Trump owns about 85% of the business and that each Twitter user is worth an estimated $42, the former president’s stake is probably worth about $180 million now. As a result of this drop in ranking, he will fall 205 places to 1,217th in the ranking of the world’s richest people in 2023.
Even that may be too expensive. Truth Social adds an estimated 100,000 users each month. If people continue to join at the current rate, and assuming no one quits or dies, Truth Social’s projected user numbers will reach 81 million in 2086. At that point, Trump will be 140 years old. More likely outcome: Truth Social will join Trump Steaks, Trump University and GoTrump.com in the graveyard of failed Trump ventures.
tall story
The president-turned-social media mogul is a real estate investor at heart, with his Manhattan portfolio worth an estimated $770 million after debt, up from $1 billion a year ago and $900 million in September. It was down from $30 million. Rising interest rates pushed the numbers down. But a new analysis of the records also found that the billionaire was lying about the size of Trump Tower, claiming it contained 246,000 square feet of retail and office space. Suggested. Property records list him as having 235,000 square feet, of which his 53,000 square feet includes common elements of little value, such as elevators, public restrooms, and mechanical space. read more.
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