Trump Media Reports $19 Million Loss in Q3 Due to Streaming and Legal Costs
Trump Media & Technology Group (TMTG), the company behind former President Donald Trump’s media ventures, reported a significant loss in the third quarter of 2024. Financial documents reveal a $19.2 million net loss, primarily due to legal fees and costs related to a recent TV streaming technology deal.
Legal Fees and Streaming Costs Drive Losses
TMTG’s losses were largely fueled by legal and operational expenses. Out of the $19.2 million loss, $12.1 million stemmed from legal fees alone. The majority of these fees are linked to the acquisition of TV streaming technology in August. Additionally, there were residual fees associated with its Special Purpose Acquisition Company (SPAC) deal from March.
The company’s research and development (R&D) expenses also contributed, totaling $3.9 million during the quarter.
Revenue and Cash Position
Despite these costs, Trump Media reported $1 million in revenue for the quarter ending in September. The company maintains a relatively strong cash position with $672.9 million in cash and cash equivalents, including short-term investments, and no debt.
Stock Market Reaction
Trump Media’s stock price saw significant fluctuations in recent days, reflecting the broader political climate. Following the earnings report, shares initially dipped but later rebounded in extended trading, gaining around 2%.
Trump Media’s Role in the Election Year
As the 2024 U.S. presidential race heats up, Trump Media has found itself in the spotlight. Former President Donald Trump and Vice President Kamala Harris are running neck and neck in polls, making this election one of the most closely watched in modern history. Market experts suggest that the company’s stock performance serves as a proxy for Trump’s election chances, with investors closely monitoring each development.
Trump Media continues to navigate a challenging financial landscape amid streaming and legal expenses while remaining a central figure in this election year.
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