Trump Media & Technology Group abandoned its plan to spin off Truth Social as a separate company on Wednesday, refocusing on completing its $6 billion merger with TAE Technologies, a California-based fusion energy company.
The companies announced in February that they were exploring a spinoff of Truth Social and other media assets into a new publicly traded entity, but said Wednesday they had decided against pursuing that path “after further evaluation.” Trump Media and TAE did not disclose a reason for the change.
Instead, Trump Media and TAE remain committed to closing their merger by the fourth quarter of 2026 or sooner, according to Reuters and Forbes. The all-stock transaction was originally announced in December 2025 and valued at more than $6 billion, marking a dramatic pivot for Trump Media away from its core social media business toward the emerging fusion energy sector.
TAE Technologies was founded in 1998 to develop commercial fusion power with what the company describes as the cleanest environmental profile. The Foothill Ranch, California-based firm has built and operated multiple fusion reactors and raised more than $1 billion from investors including Google and oil major Chevron, according to Reuters. The combined company plans to build what it describes as the world’s first utility-scale fusion power plant capable of generating 50 megawatts of electricity to help meet rising electricity demand, particularly from artificial intelligence data centers.
The spinoff cancellation came as Trump Media’s stock has faced significant pressure. Shares of the company have fallen more than 38 percent this year and were down about 1 percent in premarket trading on the news, according to Reuters. Trump Media’s market value stood at $2.2 billion as of Wednesday, representing a nearly 75 percent decline from its all-time high of roughly $8.7 billion in January 2025, per Forbes.
Trump Media went public in March 2024 through a reverse merger with Digital World Acquisition Corp. and has since expanded beyond Truth Social into cryptocurrency and financial services, announcing plans for a platform called Truth.Fi and exploring the prediction markets business in partnership with Crypto.com. The company appointed Kevin McGurn as interim CEO in April 2026, with McGurn having served as an adviser to Trump Media since December 2024.
Sources
- Reuters — Trump Media and TAE Technologies spinoff cancellation, merger timeline, and company background
- Forbes — spinoff abandonment, merger details, and Trump Media market valuation
- Bloomberg — merger announcement and TAE Technologies investor information
