New Technology World

• A company considering a merger with Truth Social cited Trump’s reputation as a “key factor” in its financial success in its SEC filings.
• Digital World said its financial base “could be adversely affected” as Trump battles his ongoing legal battle.
• Truth Social has been accused of extorting more than $1 million in contractually-mandated payments from vendors.

The future of the former president’s 10-month-old social media platform, Truth Social, has loomed large as the app faces huge financial losses, shorting vendors amid Donald Trump’s ongoing legal disputes. are in a state of uncertainty because they are accused of being

A planned merger between the Trump Media & Technology Group (TMTG), the company that created the Truth Social platform, and Digital World Acquisition Corp, a special purpose acquisition company (SPAC), prompted the Securities and Exchange Commission to investigate the platform. has been postponed indefinitely. business deal.

A SPAC, like Digital World, is a company created for the purpose of raising capital through an initial public offering or merging with an existing company. SPAC has no other commercial activity. In his SEC filings earlier this month, Digital World said it “has never been involved in any business nor has it generated any revenue,” as its sole purpose was to prepare Truth Social to go public. No,” he said.

In a separate filing, Digital World said it sought shareholder approval to delay the Sept. 8-scheduled merger until next year, citing concerns that the former president’s reputation could affect business. I asked for

“If President Trump’s popularity declines, or if more controversy emerges that undermines his credibility and the people’s desire to use platforms associated with him, from which he benefits financially, TMTG and the proposed business combination could be adversely affected,” the filing read.

Digital World’s stock price is down more than 75% from its peak in March to $27.52 per share from a high of $97.54. In recent SEC filings, the company reported he lost $6.5 million in the first half of this year.

This week, Truth Social took another hit when its trademark application was rejected on Thursday for being too similar to another social app, Vero — True Social.

Fox Business News said Thursday that Truth Social is in a heated battle with its vendor, RightForge, and has been accused of hoarding hosting services with a contractually-mandated $1.6 million payment, Fox Business News said. reported on Thursday.

Three people with direct knowledge of the matter told Fox Business News that Truth Social only paid RightForge three times for its web hosting service and stopped paying them in March.

Others, including a contractor who claims he owed more than $2.98 million after repairs to the Trump International Hotel, and a small business owner who said Trump extorted $100,000 worth of pianos from him. The Trump business has previously faced similar payment disputes. Unpaid bills at the Taj Mahal casino resort reached $90 million, after $5 million in contractor fees were left unpaid. Three liens have been imposed on Trump’s DC hotels.

Trump’s company has filed for bankruptcy at least six times, a fact Digital World pointed out in its SEC filings, The Washington Post reports. [Trump] I am filing for bankruptcy,” and “There is no guarantee of that. [Trump’s media company] No bankruptcy. ”

Representatives for Trump, TMTG, Truth Social and Lightforge did not immediately respond to an insider’s request for comment.