Trump Media & Technology Group, TAE Technologies, and Texas Ventures Acquisition III have ended their plans to spin off Truth Social and other media properties into a separate publicly traded company. The decision keeps these assets under Trump Media's umbrella as it continues to pursue a merger with TAE, a nuclear fusion firm.
Deal Details
The companies announced on June 10 that the spin-off discussions, which had been in the works since February, have been terminated after a review. Under the original plan, Truth Social, Truth+, and Truth.Fi would have been carved out into a new company that would merge with Texas Ventures Acquisition III following the TAE merger. That plan is now shelved.
Instead, Trump Media and TAE remain committed to closing their all-stock merger, valued at over $6 billion, by the fourth quarter of 2026 or sooner. The combined entity will serve as a holding company for Truth Social, Truth+, Truth.Fi, TAE, TAE Power Solutions, and TAE Life Sciences. Shareholders from both companies will each own roughly 50% of the merged firm on a fully diluted basis.
Market Impact
Trump Media's stock (NASDAQ: DJT) traded at $8.03 on Thursday afternoon, giving the company a market capitalization of about $2.22 billion. The shares have fallen over 38% year-to-date, reflecting ongoing pressure despite the merger progress.
For investors, the decision means that exposure to Truth Social remains tied to Trump Media's overall performance, rather than being separated into a distinct entity. According to Simply Wall St, keeping Truth Social under the same roof could affect how those media assets are managed and valued by the merged company, while giving management more flexibility post-deal.
Financial Context
Trump Media reported $2.2 billion in total assets and $2.1 billion in financial assets for the first quarter, according to its May filing. Revenue was just $0.9 million, with a net loss of $405.9 million. While the company has significant financial resources, turning those into a monetized media business remains a challenge.
TAE Technologies, based in California, is developing fusion power and has raised over $1 billion from investors including Google and Chevron. The planned merger would give public investors exposure to fusion energy, a sector gaining attention as AI data centers drive demand for clean power.
Next Steps
Investors are now watching for the next major milestone: the merger filing. Trump Media plans to file a Form S-4 with the SEC, which will include a proxy and prospectus for Trump Media shareholders and a consent solicitation for TAE stockholders. Until those documents are submitted, there is limited information available about the new company's pro forma financials, governance, or risk factors.
The companies have not disclosed the reasons for abandoning the spin-off plan. The merged board will evaluate strategic options for the legacy businesses after the deal closes, according to a June 10 update.
