Trump Media & Technology Group Corp. and TAE Technologies have abandoned plans to spin off Truth Social into a separate publicly traded company, instead focusing on completing their merger by the fourth quarter. The decision ends a months-long evaluation of a potential separation of TMTG's media assets that was first disclosed in February.
Trump Media & Technology Group and TAE Technologies scrapped plans to spin off Truth Social into a separate publicly listed company, prioritizing completion of their merger by the fourth quarter.
"After further evaluation, the parties have determined not to continue pursuing the Spin-Off at this time," the companies said in a statement Wednesday.
The decision ends a process disclosed Feb. 27 involving TMTG, TAE and special-purpose acquisition company Texas Ventures Acquisition III. TMTG shares closed at $8.16 Monday on the Nasdaq, up 0.12%.
The combined company's board will evaluate strategic alternatives for TMTG's media assets after the merger closes, leaving the door open for a future separation of Truth Social, the social media platform launched as a safe harbor for free expression.
The TAE Merger, announced earlier this year, combines TMTG's media and financial technology operations with TAE's fusion energy business. TAE Technologies is one of the world's leading fusion power companies, developing technology to bring abundant clean energy to the grid. It also operates TAE Power Solutions, which provides energy storage and power delivery systems for batteries and electric vehicles, and TAE Life Sciences, which develops technologies and drugs for treating cancer patients.
TMTG operates Truth Social, a social media platform established as an alternative to what it calls Big Tech's censorship; Truth+, a TV streaming platform focusing on family-friendly live TV channels and on-demand content; and Truth.Fi, a financial services and FinTech brand incorporating America First investment vehicles. The company employs 31 people, according to its latest filings.
The companies said they aim to close the transaction in the fourth quarter of 2026 or sooner. Following the closing, the combined company's board will evaluate potential strategic alternatives for legacy business units, including TMTG's media assets, to enhance shareholder value. The board's mandate includes potential sales, spin-offs or other transactions involving the media properties.
The spin-off plan had envisioned merging Truth Social and other TMTG media assets with Texas Ventures Acquisition III, a SPAC, after the TAE Merger closed. The decision to abandon the spin-off simplifies the corporate structure and removes one layer of complexity from the transaction. TMTG had previously described the potential spin-off as a way to allow each business to be valued independently.
The merger with TAE represents a significant strategic pivot for TMTG, moving beyond social media into the energy sector. The combined entity would operate across social media, streaming, financial services and fusion energy, subject to shareholder and regulatory approvals. TMTG said it will file a registration statement on Form S-4 with the Securities and Exchange Commission in connection with the merger.
This article is for informational purposes only and does not constitute investment advice.
