Trump Media & Technology Group (DJT) stock fell 14% on Tuesday after the company announced it’s launching a new live TV streaming platform.
According to a press release, Trump Media — the parent company of Donald Trump’s social media platform Truth Social — will launch the live streaming service on phones, tablets, and TV through the Truth Social app.
“The streaming content is expected to focus on live TV including news networks, religious channels, family-friendly content including films and documentaries; and other content that has been cancelled, is at risk of cancellation, or is being suppressed on other platforms and services,” according to the release.
Trump Media went public on the Nasdaq after merging with special purpose acquisition company Digital World Acquisition Corp. in a deal approved by shareholders late last month. Shares are down more than 60% since the end of March.
On Monday, the stock tumbled on news the company had filed to issue more than 21 million shares.
Trump maintains a roughly 60% stake in Truth Social. As of Tuesday’s closing price of $22.84 a share, Trump Media boasts a market cap of roughly $3.1 billion, giving the former president a stake worth around $1.85 billion. Right after the company’s public debut, Trump’s stake was worth just over $4.5 billion.
The former president founded Truth Social after he was kicked off major social media apps like Facebook and Twitter, the platform now known as X, following the Jan. 6 Capitol riots in 2021. Trump has since been reinstated on those platforms.
According to an updated regulatory filing released earlier this month, Trump Media reported sales of just over $4 million as net losses reached nearly $60 million for the full year ending Dec. 31. The company warned it expects losses to continue amid greater profitability challenges.
The filing also confirmed stakeholders are still subject to a six-month lockup period before selling or transferring shares. The only exception to the lockup period would be if the company’s board votes to make a special dispensation. Although possible, experts told Yahoo Finance last month the attempt would likely result in multiple lawsuits on behalf of public shareholders.
Trump faces a $454 million fraud penalty and grapples with a campaign fundraising shortfall ahead of his 2024 election rematch against Biden.
Trump recently posted a $175 million bond in the fraud case, which puts the final payment on hold while he appeals the verdict.
Alexandra Canal is a Senior Reporter at Yahoo Finance. Follow her on X @allie_canal, LinkedIn, and email her at alexandra.canal@yahoofinance.com.
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