Devin Nunes, CEO of Truth Social, speaks during a general session at the Conservative Political Action Conference (CPAC) in Dallas, Texas, U.S., August 5, 2022. REUTERS
(Reuters) – Trump Media & Technology Group is planning to pursue potential mergers and acquisitions, U.S. President Donald Trump’s social media firm said on Friday, as it looks to diversify into sectors such as financial services.
The company continues to “hunt for top quality assets,” CEO Devin Nunes said in a letter to shareholders.
Trump Media, which runs the Truth Social streaming and social media platform, envisions ultimately becoming a larger holding company for numerous products and services, it said.
The company said in April it had reached a binding agreement to roll out an array of retail investment products, including crypto, a development that has drawn scrutiny from government ethics watchdogs.
It ended its first quarter with $759 million of cash, cash equivalents and short-term investments. Total liabilities as of that period stood at $27.2 million.
“This amount of liquidity, in conjunction with Trump Media’s low operating costs and low cash burn rate, will fully enable it to pursue all its expansion plans, including enhancing its existing platforms, diversifying into fintech and financial services, and pursuing potential mergers and acquisitions,” the company said in a statement.
In the three months ended March 31, Trump Media’s net sales rose more than 6% to $8.2 million. Its net loss also narrowed to $31.7 million in that period.
Trump Media shares were little changed in extended trading.
Reporting by Arsheeya Bajwa in Bengaluru; Editing by Anil D’Silva
