Trump Media & Technology Group and nuclear fusion company TAE Technologies abandoned plans to spin off Truth Social into a separate, publicly traded company on Wednesday, refocusing entirely on their $6 billion merger deal.
The companies said they would no longer pursue a spinoff of Truth Social and other media assets after “further evaluation,” according to disclosures made by Trump Media, TAE Technologies, and Texas Ventures III, the special-purpose acquisition company that would have housed the spun-off unit. Neither company provided a reason for walking back the strategy.
In February, Trump Media announced it was exploring a separation of Truth Social into its own public company through a merger with Texas Ventures III. Under that plan, shareholders would have received shares in the spun-off entity before the TAE merger closed. That structure would have allowed the social media platform to exist independently from the fusion energy business after the combined company formed.
Instead, Trump Media and TAE Technologies said they remain focused on completing their merger as soon as possible, with a goal of closing by the fourth quarter of 2026 or sooner. The all-stock deal, announced in December, will combine Trump’s media assets—including Truth Social, Truth+, and Truth.Fi—with TAE’s nuclear fusion technology operations.
According to Reuters, TMTG has faced challenges scaling its media business amid competition from larger social networks and uneven user growth. The company’s stock has fallen more than 38% this year, with Trump Media’s market value dropping to $2.2 billion as of Wednesday, a nearly 75% decline from its all-time high of roughly $8.7 billion in January 2025, according to Forbes.
After the TAE merger closes, the combined company’s board of directors will evaluate potential strategic alternatives for its legacy media businesses, the companies said. TAE Technologies, a California-based fusion developer founded in 1998, has raised more than $1 billion from investors including Google and oil major Chevron.
Sources
- Reuters — Trump Media and TAE Technologies’ decision to abandon the Truth Social spinoff, challenges facing the media business, stock performance, and merger timeline.
- Forbes — Details on the spinoff abandonment, the February spinoff plan, Trump Media’s market valuation decline, and Trump’s stake in the company.
- Bloomberg — Confirmation of the merger timeline and spinoff cancellation.
