Trump’s social media app facing financial fallout
Truth Social’s finances may be in significant disarray, sources say
By Charlie Gasparino , Eleanor Terrett FOXBusiness
Rove says Trump’s demand for special review not ‘likely’ to happen
Former Deputy Chief of Staff for President George Bush Karl Rove outlines President Trump’s special request to block the Department of Justice from viewing seized documents and unpacks the raid’s impact on the midterms.
Former President Donald Trump’s social media outfit, Truth Social, is locked in a bitter battle with one of its vendors claiming that the platform is stiffing the company out of more than $1 million in contractually obligated payments, FOX Business has learned.
If the allegations are true, they would suggest that Truth Social’s finances are in significant disarray, people with direct knowledge of the matter say. Internet infrastructure company RightForge is said to be among Truth Social’s largest vendors and creditors, these people say.
In October, RightForge announced it entered into an agreement to host Truth Social, which Trump helped create after he was banned by Twitter following the Jan. 6 riots. RightForge now contends that Truth Social has reneged on its contractually obligated monthly payments for setting up the platform’s web-servicing infrastructure, according to three people with direct knowledge of the matter.
These people say RightForge contends that Truth Social has made just three payments and ceased making any payments since around March. RightForge claims that Truth Social owes it around $1.6 million and is threatening legal action to recoup the money, these people add.
TRUMP’S SOCIAL MEDIA PLATFORM TRUTH SOCIAL, BUYER NEED EXTENSION TO COMPLETE MERGER
RightForge CEO Martin Avila declined to comment “on any private matters,” but wouldn’t deny the disagreement between the two entities. He added in a statement: “Our founding vision is to make a second internet to support American ideas online. RightForge believes in the mission of President Trump’s free speech platform and wish to continue supporting the president in his media endeavors.”
A spokesman for Truth Social also would not deny the matter when contacted by FOX Business. A spokesman for Trump had no comment.
Former President Donald Trump leaves Trump Tower in Manhattan on May 18, 2021. (James Devaney/GC Images | App store / Getty Images)
Since its launch in February, Truth Social has been the main conduit for the former president to make public announcements and attack critics. While its reach pales in comparison to Twitter’s estimated 200-million-plus active daily users, interest in the platform has peaked recently in the aftermath of the FBI raid on Trump’s Mar-a-Lago residence.
Truth Social is part of Trump Media and Technology Group, a holding company for the platform that, according to regulatory filings, has broader plans to expand into streaming and other services to promote Trump’s political brand. Trump is said to hold a controlling interest in Truth Social, though his monetary investment in it is said to be negligible to nonexistent, and he is not in control of its day-to-day operations.
In January, former Republican California Rep. Devin Nunes was named the CEO of Trump Media with Trump described in regulatory filings as its chair. Nunes didn’t return an email for comment.
But Truth Social’s launch has been anything but smooth. Its early rollout was plagued with technological glitches. More recently, its planned merger with Digital World Acquisition Corp., a special purpose acquisition company, or SPAC, has been put off indefinitely amid various probes into its business dealings, including a Justice Department grand jury probe and an investigation by the Securities and Exchange Commission.
ELON MUSK WILL HAVE ‘TOUGH TIME’ CHANGING TWITTER’S CULTURE: TRUMP MEDIA CEO
Digital World and Trump Media have said they are co
