Trump Media & Technology Group (DJT) stock fell 14% on Tuesday after the company announced it would launch a new live TV streaming platform.
Trump Media, the parent company of Donald Trump's social media platform Truth Social, will launch live streaming services on phones, tablets and TVs through the Truth Social app, according to a press release.
“Streaming content is available on live TV, including news networks, religious channels, family-friendly content such as movies and documentaries, and other content that has been canceled, is at risk of cancellation, or is being suppressed on other platforms or services. “It is expected that there will be increased emphasis on this,” according to the release.
Late last month, with shareholder approval, Trump Media merged with special purpose acquisition company Digital World Acquisition Corporation and listed on the Nasdaq. The stock price has fallen more than 60% since the end of March.
Shares fell on Monday following news that the company had applied to issue more than 21 million shares of stock.
Trump maintains about a 60% stake in Truth Social. As of Tuesday's closing price of $22.84 per share, Trump Media has a market capitalization of about $3.1 billion, and the former president's stock holdings are worth about $1.85 billion. Shortly after the company's public debut, Trump's stake was valued at just over $4.5 billion.
The former president founded Truth Social after being banned from major social media apps such as Facebook and Twitter, the platform now known as X, following the January 6, 2021, Capitol riot. Trump has since returned to these platforms.
Trump Media reported a net loss of nearly $60 million for the year ending Dec. 31 on revenue of just over $4 million, according to its latest regulatory filing released earlier this month. did. The company warned that it expects losses to continue as profitability challenges grow.
The filing also confirmed that interested parties will continue to be subject to a six-month lock-up period before any sale or transfer of shares. The only exception to the lock-up period is if the company's board of directors resolves to implement special measures. While possible, experts told Yahoo Finance last month that the effort would likely result in multiple lawsuits on behalf of public shareholders.
Trump is facing a $454 million fraud fine and faces a campaign cash crunch ahead of his rematch with Biden in the 2024 election.
President Trump recently posted $175 million bail in the fraud case, and the final payment will be withheld while he appeals the verdict.
alexandra canal I'm a senior reporter at Yahoo Finance. Follow her on X @allie_canal, LinkedIn, Email alexandra.canal@yahoofinance.com.
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