Trump Media abandons Truth Social spinoff but retains TAE merger.
In summary, Trump Media has decided not to go forward with its proposed spinoff of Truth Social into a SPAC associated with Trump family allies. The $6 billion merger with TAE Technologies remains scheduled for completion in the fourth quarter of 2026.
Trump Media & Technology Group, TAE Technologies, and Texas Ventures Acquisition III announced on Wednesday that they will not pursue the spinoff of Truth Social and other media assets. They confirmed their commitment to finalizing the $6 billion merger by Q4 2026 or sooner.
Discussions regarding the spinoff started in February when the companies expressed interest in transferring Truth Social into a new publicly traded company that would merge with Texas Ventures Acquisition III, a special purpose acquisition company (SPAC) led by Trump family associates, including executives from the Trump Organisation.
What the spinoff aimed to achieve
The proposed structure would have detached Truth Social from the merged Trump Media and TAE entity following the completion of the merger. Shares in the new spinoff would have been allocated to Trump Media shareholders prior to the merger with TAE, after which the new entity would merge with Texas Ventures, a SPAC.
This plan has now been scrapped. Instead, the board of the merged company will consider “potential strategic alternatives” for the legacy media assets of Trump Media after the merger with TAE is completed.
Details about the TAE merger
TAE Technologies, based in California, focuses on developing aneutronic fusion power. The company has built and operated five fusion reactors and has secured over $1.3 billion in funding from investors like Google, Chevron, Goldman Sachs, and NEA.
The merger, which was announced in December 2025, is valued at over $6 billion in an all-stock deal. The combined entity plans to locate and commence construction on its first utility-scale fusion power facility, a 50-megawatt plant, in 2026.
Trump Media’s financial status
According to the Bloomberg Billionaires Index, Trump Media is valued at around $1.3 billion. Shares of DJT saw a decrease of less than 1% in premarket trading on Wednesday.
The company reported a net loss of $712 million in 2025 and around $870,000 in revenue during the first quarter of 2026. Truth Social is estimated to have about 6.3 million monthly active users, far fewer than platforms like X, Instagram, or other competitors.
Concerns raised
President Donald Trump owns a 57.6% stake in Trump Media. Ethics experts have cautioned that the merger could present conflicts of interest, given Trump's direct oversight of governmental agencies such as the SEC and FCC that regulate the company.
TAE Technologies has yet to commercialize fusion power and does not earn significant revenue from energy production. The $6 billion valuation relies on the potential of a technology that has not yet been realized at a commercial scale, leaving the combined entity’s immediate revenue prospects minimal.
The cancellation of the spinoff raises questions about the reasons behind its failure. No additional details were provided beyond reaffirming support for the TAE merger. The involvement of Trump family allies in the SPAC intended to take on Truth Social introduced a conflict that ethics watchdogs had highlighted.
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Trump Media abandons Truth Social spinoff but retains TAE merger.
Trump Media has decided to scrap its initiative to convert Truth Social into a SPAC overseen by Trump associates. The $6 billion merger deal with TAE Technologies aims for a completion date in the fourth quarter of 2026.