# How Can Truth Social be worth $6 Billion? {Trump Media & Technology (DJT)} **URL:** \ **Category:** In My Humble Opinion\ **Tags:** trump\ **Created:** [March 22, 2024, 1:23pm UTC](https://boards.straightdope.com/t/how-can-truth-social-be-worth-6-billion-trump-media-technology-djt/999202 "2024-03-22T13:23:05Z")\ **Posts on this page:** 20\ **Page:** 41
**Author:** ![EddyTeddyFreddy](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/eddyteddyfreddy/32/18796_2.png) [@EddyTeddyFreddy](https://boards.straightdope.com/u/EddyTeddyFreddy)\ **Post date:** [September 23, 2024, 9:09pm UTC](https://boards.straightdope.com/t/how-can-truth-social-be-worth-6-billion-trump-media-technology-djt/999202/801 "2024-09-23T21:09:53Z")
So extracting the actual cash value would require selling off such assets? Which if done too precipitously could tank their value as well? ---
**Author:** ![wolfpup](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/wolfpup/32/10618_2.png) [@wolfpup](https://boards.straightdope.com/u/wolfpup)\ **Post date:** [September 23, 2024, 9:26pm UTC](https://boards.straightdope.com/t/how-can-truth-social-be-worth-6-billion-trump-media-technology-djt/999202/802 "2024-09-23T21:26:52Z")
So, the $12.15 close means it’s down 10.33% on the day. Winning! As for the cash on hand, don’t forget they’re losing about $16 million every quarter, on almost no revenue. Still, the bigwigs who have been selling off in recent days are making a bundle. It’s the rubes who bought in at $90 or more who are well and truly fleeced. After all, its’s a Trump property, what could go wrong? . ---
**Author:** ![Andy\_L](https://avatars.discourse-cdn.com/v4/letter/a/c67d28/32.png) [@Andy\_L](https://boards.straightdope.com/u/Andy_L)\ **Post date:** [September 23, 2024, 9:31pm UTC](https://boards.straightdope.com/t/how-can-truth-social-be-worth-6-billion-trump-media-technology-djt/999202/803 "2024-09-23T21:31:32Z")
Good work! Norman conquest tomorrow? ---
**Author:** ![wolfpup](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/wolfpup/32/10618_2.png) [@wolfpup](https://boards.straightdope.com/u/wolfpup)\ **Post date:** [September 23, 2024, 10:08pm UTC](https://boards.straightdope.com/t/how-can-truth-social-be-worth-6-billion-trump-media-technology-djt/999202/804 "2024-09-23T22:08:56Z")
I’m looking forward to the Battle Of Nineveh (627)! 😃 ---
**Author:** ![EddyTeddyFreddy](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/eddyteddyfreddy/32/18796_2.png) [@EddyTeddyFreddy](https://boards.straightdope.com/u/EddyTeddyFreddy)\ **Post date:** [September 23, 2024, 10:35pm UTC](https://boards.straightdope.com/t/how-can-truth-social-be-worth-6-billion-trump-media-technology-djt/999202/805 "2024-09-23T22:35:46Z")
> [@wolfpup](#): > > As for the cash on hand, don’t forget they’re losing about $16 million every quarter, on almost no revenue. But are they paying those bills? ---
**Author:** ![EddyTeddyFreddy](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/eddyteddyfreddy/32/18796_2.png) [@EddyTeddyFreddy](https://boards.straightdope.com/u/EddyTeddyFreddy)\ **Post date:** [September 23, 2024, 10:36pm UTC](https://boards.straightdope.com/t/how-can-truth-social-be-worth-6-billion-trump-media-technology-djt/999202/806 "2024-09-23T22:36:50Z")
How about the fall of the Western Roman Empire! 467. ---
**Author:** ![JohnT](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/johnt/32/15048_2.png) [@JohnT](https://boards.straightdope.com/u/JohnT)\ **Post date:** [September 23, 2024, 10:40pm UTC](https://boards.straightdope.com/t/how-can-truth-social-be-worth-6-billion-trump-media-technology-djt/999202/807 "2024-09-23T22:40:28Z")
Birth of Jesus: -4 ---
**Author:** ![dougrb](https://avatars.discourse-cdn.com/v4/letter/d/76d3ee/32.png) [@dougrb](https://boards.straightdope.com/u/dougrb)\ **Post date:** [September 23, 2024, 10:43pm UTC](https://boards.straightdope.com/t/how-can-truth-social-be-worth-6-billion-trump-media-technology-djt/999202/808 "2024-09-23T22:43:47Z")
> [@Whack-a-Mole](#): > > company says Truth Social to launch TV streaming I was actually looking forward to that. ---
**Author:** ![Andy\_L](https://avatars.discourse-cdn.com/v4/letter/a/c67d28/32.png) [@Andy\_L](https://boards.straightdope.com/u/Andy_L)\ **Post date:** [September 23, 2024, 10:59pm UTC](https://boards.straightdope.com/t/how-can-truth-social-be-worth-6-billion-trump-media-technology-djt/999202/809 "2024-09-23T22:59:01Z")
Sounds familiar > [@How Can Truth Social be worth $6 Billion? {Trump Media & Technology (DJT)}](https://boards.straightdope.com/t/how-can-truth-social-be-worth-6-billion-trump-media-technology-djt/999202/663): > > Fall of the Western Roman Empire! ---
**Author:** ![EddyTeddyFreddy](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/eddyteddyfreddy/32/18796_2.png) [@EddyTeddyFreddy](https://boards.straightdope.com/u/EddyTeddyFreddy)\ **Post date:** [September 23, 2024, 11:00pm UTC](https://boards.straightdope.com/t/how-can-truth-social-be-worth-6-billion-trump-media-technology-djt/999202/810 "2024-09-23T23:00:56Z")
Great minds and all that… How about the assassination of Caligula? (44 AD) ---
**Author:** ![wolfpup](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/wolfpup/32/10618_2.png) [@wolfpup](https://boards.straightdope.com/u/wolfpup)\ **Post date:** [September 23, 2024, 11:06pm UTC](https://boards.straightdope.com/t/how-can-truth-social-be-worth-6-billion-trump-media-technology-djt/999202/811 "2024-09-23T23:06:36Z")
> [@EddyTeddyFreddy](#): > > > [@wolfpup](#): > > > > As for the cash on hand, don’t forget they’re losing about $16 million every quarter, on almost no revenue. > > But are they paying those bills? They’re obviously paying for something, though Lord only knows what. They have something like 36 employees in total, which might be the kind of staffing you’d need to run a roadside diner. IT costs? The whole thing could run on a cheap server in Devin Nunes’ basement. According to their **[most recent financial statement](https://www.sec.gov/Archives/edgar/data/1849635/000114036124016719/ef20025342_ex99-2.htm)** their two largest operational expenses are bullshit categories like “research and development” and “general and administration”, both of which I’m sure are grossly inflated scams. The most astonishing thing is a category called “interest expense”, which for the year ended last December was a staggering $39.4 million, and over $42 million when a bullshit category called “change in fair value of derivative liabilities” is added in. The two words that come to mind reading all this are “scam” and “shady”. This all sounds to me like a combination of a scam to fleece the rubes and a tax-avoidance scam. I mean we basically all knew that, but their financial statements absolutely reek of shady dealings and dishonesty. They have almost no revenue, no real business, and their worthless stock was comically over-valued. Some people have lost serious money in this scam. My only consolation is that almost all of them deserve it. ---
**Author:** ![EddyTeddyFreddy](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/eddyteddyfreddy/32/18796_2.png) [@EddyTeddyFreddy](https://boards.straightdope.com/u/EddyTeddyFreddy)\ **Post date:** [September 23, 2024, 11:08pm UTC](https://boards.straightdope.com/t/how-can-truth-social-be-worth-6-billion-trump-media-technology-djt/999202/812 "2024-09-23T23:08:55Z")
Thanks for that attempt at an explanation. I wonder how much of the scam is finding its way to Trump? Got to be a significant percentage of it. ---
**Author:** ![OttoDaFe](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/ottodafe/32/356_2.png) [@OttoDaFe](https://boards.straightdope.com/u/OttoDaFe)\ **Post date:** [September 23, 2024, 11:09pm UTC](https://boards.straightdope.com/t/how-can-truth-social-be-worth-6-billion-trump-media-technology-djt/999202/813 "2024-09-23T23:09:50Z")
I’m betting the [Third Servile War](https://en.wikipedia.org/wiki/Third_Servile_War) (aka Gladiator War or War of Spartacus), -73 ---
**Author:** ![LSLGuy](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/lslguy/32/5813_2.png) [@LSLGuy](https://boards.straightdope.com/u/LSLGuy)\ **Post date:** [September 24, 2024, 3:02am UTC](https://boards.straightdope.com/t/how-can-truth-social-be-worth-6-billion-trump-media-technology-djt/999202/814 "2024-09-24T03:02:03Z")
> [@EddyTeddyFreddy](#): > > So extracting the actual cash value would require selling off such assets? Which if done too precipitously could tank their value as well? If those mysterious assets are Microsoft or GM stock, that much volume trades hands every few minutes every day. Day in and day out. Selling all of DJT’s holdings would have negligible impact on the price. OTOH if those “assets” are actually shares in some other fake business, or debt of an insolvent shell company, there’s no way to sell them at all. The only value they have the claimed value on the books. The actual value is zero and the actual real money was spirited away through 12 offshore shell outfits 9 months ago. We here can’t say we know where that value went, but we can sure guess. ---
**Author:** ![wolfpup](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/wolfpup/32/10618_2.png) [@wolfpup](https://boards.straightdope.com/u/wolfpup)\ **Post date:** [September 24, 2024, 6:07am UTC](https://boards.straightdope.com/t/how-can-truth-social-be-worth-6-billion-trump-media-technology-djt/999202/815 "2024-09-24T06:07:22Z")
> [@wolfpup](#): > > According to their **[most recent financial statement](https://www.sec.gov/Archives/edgar/data/1849635/000114036124016719/ef20025342_ex99-2.htm)** their two largest operational expenses are bullshit categories like “research and development” and “general and administration”, both of which I’m sure are grossly inflated scams. The most astonishing thing is a category called “interest expense”, which for the year ended last December was a staggering $39.4 million, and over $42 million when a bullshit category called “change in fair value of derivative liabilities” is added in. I’d be very interested in how to reconcile that massive interest payment with **[the following statement](https://www.cnbc.com/2024/09/23/djt-trump-media-stock-drop-lockup.html)** from a Trump Media spokesperson: > Trump Media ended last quarter with $344 million in cash and cash equivalents and zero debt If you’re swimming in cash and have no debt, who is that $39.4 million in interest going to and why? It’s the biggest single expense that DJT has. And it wasn’t just in the last fiscal year. They’re still losing the same amount of money per the last reported quarter, if not more, on the same anemic (nearly non-existent) revenues. And why is there no sign of that “$344 million in cash” anywhere on their actual audited financial statements? The whole thing is so fishy that I can’t help but think that this is basically the Donald Trump NFT trading cards scam writ large, but just fine-tuned enough to pass SEC scrutiny. ---
**Author:** ![TokyoBayer](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/tokyobayer/32/13989_2.png) [@TokyoBayer](https://boards.straightdope.com/u/TokyoBayer)\ **Post date:** [September 24, 2024, 8:07am UTC](https://boards.straightdope.com/t/how-can-truth-social-be-worth-6-billion-trump-media-technology-djt/999202/816 "2024-09-24T08:07:47Z")
They are just interested in giving Trump more cash. That’s an interest payment, right? ---
**Author:** ![smithsb](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/smithsb/32/12107_2.png) [@smithsb](https://boards.straightdope.com/u/smithsb)\ **Post date:** [September 24, 2024, 1:32pm UTC](https://boards.straightdope.com/t/how-can-truth-social-be-worth-6-billion-trump-media-technology-djt/999202/817 "2024-09-24T13:32:57Z")
I’m wondering if Don the Con used his stock as collateral in the Chubb bond case - appeal of Carroll defamation verdict? "Greenberg in his letter Wednesday said that Chubb had protected itself by requiring that Trump’s bond, like any others issued by the company, is “fully collateralized.” “If the bond is called, then Chubb takes the collateral which is intended to make us whole,” Greenberg wrote. “We hardly support or subsidize defendants or take ‘one for the team.’ ” > **[Chubb CEO defends backing Trump appeal bond in E. Jean Carroll case](https://www.nbcnews.com/politics/donald-trump/ceo-insurance-company-backed-trump-bond-carroll-case-defends-issuing-p-rcna143252)** > > Donald Trump has asked a federal appeals court to overturn a massive defamation judgment in favor of writer E. Jean Carroll, who accused him of rape. ---
**Author:** ![ftg](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/ftg/32/2801_2.png) [@ftg](https://boards.straightdope.com/u/ftg)\ **Post date:** [September 24, 2024, 1:41pm UTC](https://boards.straightdope.com/t/how-can-truth-social-be-worth-6-billion-trump-media-technology-djt/999202/818 "2024-09-24T13:41:24Z")
There’s been mention of the lockup requirement has a minimum stock price of $12 a share. The actual specs in the filing are: ““Lock-up Period” means the period beginning on March 25, 2024 and ending on the earliest of (i) September 25, 2024, (ii) the date on which the closing price for the Common Stock equals or exceeds $12.00 per share (as adjusted for stock splits, stock dividends, reorganizations, recapitalization and the like) for any 20 trading days within any 30-trading day period commencing on August 22, 2024,” Can anyone figure out if this means that Trump is going to be locked in if the stock falls below 12? It’s at 12.10 as I write this and falling fast. And it’s 11.88 and rocketing to the bottom. If Trump put up some his shares for the bond the interest on the bond is technically the responsibility of Trump, not his company. But technicalities are often ignored in that world. ---
**Author:** ![TroutMan](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/troutman/32/6721_2.png) [@TroutMan](https://boards.straightdope.com/u/TroutMan)\ **Post date:** [September 24, 2024, 2:24pm UTC](https://boards.straightdope.com/t/how-can-truth-social-be-worth-6-billion-trump-media-technology-djt/999202/819 "2024-09-24T14:24:25Z")
> [@ftg](#): > > Can anyone figure out if this means that Trump is going to be locked in if the stock falls below 12? It ended on when the 20 days over $12 was fulfilled. It doesn’t restart. ---
**Author:** ![LSLGuy](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/lslguy/32/5813_2.png) [@LSLGuy](https://boards.straightdope.com/u/LSLGuy)\ **Post date:** [September 24, 2024, 2:52pm UTC](https://boards.straightdope.com/t/how-can-truth-social-be-worth-6-billion-trump-media-technology-djt/999202/820 "2024-09-24T14:52:32Z")
> [@ftg](#): > > ““Lock-up Period” means the period beginning on March 25, 2024 and ending on the earliest of (i) September 25, 2024, (ii) the date on which the closing price for the Common Stock equals or exceeds $12.00 per share (as adjusted for stock splits, stock dividends, reorganizations, recapitalization and the like) for any 20 trading days within any 30-trading day period commencing on August 22, 2024,” > > Can anyone figure out if this means that Trump is going to be locked in if the stock falls below 12? It’s at 12.10 as I write this and falling fast. Read it this way: > "Lock-up Period” means the period beginning on March 25, 2024 and ending on the earliest of (i) September 25, 2024, (ii) some complicated mumbo-jumbo that’s hard to understand. Because the lockup period ends on the _earliest_ of the two dates, the mumbo-jumbo might under certain circumstances allow the lockup to release sooner than Sep 25, but it cannot extend it past Sep 25. [Previous page](https://boards.straightdope.com/t/how-can-truth-social-be-worth-6-billion-trump-media-technology-djt/999202.md?page=40) [Next page](https://boards.straightdope.com/t/how-can-truth-social-be-worth-6-billion-trump-media-technology-djt/999202.md?page=42)