Following the announcement of intentions to build a live TV streaming network, Trump Media’s stock price declines

The news that Trump Media & Technology Group (DJT) is launching a new live TV streaming platform caused the company’s shares to drop by more than 10% on Tuesday.

A news statement states that the live streaming service would be made available on phones, tablets, and TV via the Truth Social app by Trump Media, the parent business of Donald Trump’s social media site Truth Social.

«The streaming content is expected to focus on live TV including news networks, religious channels, family-friendly content including films and documentaries; and other content that has been cancelled, is at risk of cancellation, or is being suppressed on other platforms and services,» according to the press release.

Following a deal authorized by shareholders late last month, Trump Media merged with special purpose acquisition firm Digital World Acquisition Corp. and became public on the Nasdaq. Since the end of March, shares have decreased by about 60%.

The announcement that the business had filed to issue more than 21 million shares caused the price to plunge on Monday.

At Truth Social, Trump still owns around 60% of the company. With Trump Media’s stock trading at approximately $23.40 a share, the company has a market value of about $3.2 billion, and the former president has a stake of nearly $1.9 billion. At the time of the business’s public launch, Trump’s ownership interest was little more than $4.5 billion.

Following the Capitol riots on January 6, 2021, the former president was banned from using popular social media platforms like Facebook and Twitter. As a result, he launched Truth Social. Today, the network is known as X. Since then, Trump has been added back to those sites.

In an amended regulatory filing earlier this month, Trump Media stated that its full year revenues came to just over $4 million, while its net losses came to about $60 million. The file was made before the end of December 31. The business issued a warning, saying it expects losses to persist despite more difficulties with profitability.

In addition to dealing with a $454 million fraud fine, Trump is also facing a fundraising deficit for his 2024 rematch with Biden.

In the fraud case, Trump recently secured a $175 million bail, delaying the ultimate payment while he files an appeal.