Truth Social spin-off dropped.
Trump Media Group, SPAC abandon Truth Social spin-off, pursuing fusion tech merger.
Key Points
The planned spin-off involved Texas Ventures Acquisition III, described as a SPAC run by Trump family allies, including executives and business partners linked to the Trump Organization.
TAE Technologies’ fusion credentials include that it has already built and operated five fusion reactors and raised more than $1.3 billion from investors such as Google, Chevron, Goldman Sachs and NEA.
In the December 2025 $6 billion all-stock deal framework, the merged company planned to site and begin construction of its first utility-scale fusion plant—a 50-megawatt facility—in 2026.
Market and ownership context: one report put Trump Media’s market value at about $2.2 billion (down nearly 75% from an all-time high around $8.7 billion in Jan. 2025), and said President Trump holds a 52% stake—about 114.7 million shares worth roughly $932.5 million at Wednesday’s price.
Trump Media & Technology Group has scrapped plans to spin off Truth Social into a separate public company, the firm announced June 10 alongside merger partner TAE Technologies Globe Newswire. The companies said only that the decision came "after further evaluation," and that they remain on track to close their $6 billion all-stock fusion energy merger by Q4 2026 Forbes.
The reversal leaves Trump Media shareholders holding a hybrid company that combines Truth Social — a platform that generated just $871,200 in revenue in Q1 2026 while losing $406 million — with TAE Technologies' unproven but well-funded nuclear fusion business Benzinga CBS News.
Why the Spin-Off Was Born — and Killed
The spin-off plan first surfaced in February 2026 Financial Times. Under that structure, Truth Social would have been placed into a new company called "SpinCo," which would then merge with a blank-check vehicle called Texas Ventures Acquisition III. Existing Trump Media shareholders would have received shares in the new entity. The goal was to give investors two clean choices: a pure social-media stock and a pure fusion-energy stock.
Critics say the structure collapsed under its own weight. Truth Social has only about 6.3 million monthly active users, a fraction of competitors with billions The Next Web. TMTG reported a $712 million net loss for all of 2025 on just $3.7 million in revenue CBS News. Those numbers made it nearly impossible to pitch Truth Social as a viable standalone public company.
Texas Ventures SPAC Loses Its Main Role
Texas Ventures Acquisition III was the SPAC at the center of the scrapped plan. Its chairman is Mark Angelo, and its board includes Alan Garten, who also serves as general counsel for the Trump Organization The Next Web. Kevin McGurn, the SPAC's CEO, was named interim CEO of Trump Media in April after Devin Nunes resigned to join the President's Intelligence Advisory Board Associated Press.
With the spin-off dead, Texas Ventures' role shrinks sharply. It will no longer serve as a "landing vehicle" for Truth Social. Instead, the board of the combined TMTG-TAE company will review "potential strategic alternatives" for the media assets after the merger closes Globe Newswire. That could mean a sale, a shutdown, or a later spin-off attempt on different terms.
TAE Technologies: Fusion Bets and Blue-Chip Backers
TAE Technologies brings real scientific heft to the deal. Founded in 1998, it has built and operated five fusion reactors, including its current model called Copernicus Value The Markets. It has raised more than $1.3 billion from investors including Google, Chevron, Goldman Sachs, and NEA TAE Technologies. TAE CEO Michl Binderbauer has said "technology is what matters" and welcomed regulatory scrutiny despite the deal's political ties The Guardian.
The merged company plans to site and begin construction of a 50-megawatt utility-scale fusion plant in 2026, targeting grid power delivery in the early 2030s World Nuclear News. Analyst Dan Ives of Wedbush said TAE is likely to receive "major political support" from the Trump administration. Ethics watchdogs at CREW and Public Citizen warn the deal creates troubling conflicts if the company seeks Department of Energy grants while the president holds a 52% stake in TMTG The Guardian.
Stock Down 75% From Peak as Merger Clock Ticks
TMTG shares slipped roughly 1.5% to 2% after the June 10 announcement, extending a brutal run Benzinga. The stock is down 38% year-to-date and about 61.7% over the past 12 months. At Wednesday's price, Trump Media's total market value stood near $2.2 billion — down nearly 75% from an all-time high of roughly $8.7 billion in January 2025 Forbes.
President Trump holds 52% of TMTG — about 114.7 million shares worth roughly $932.5 million at current prices Forbes. The $6 billion all-stock merger would give TMTG and TAE shareholders roughly 50% each of the combined company Globe Newswire. With the spin-off gone, investors must now bet on both Truth Social's turnaround and fusion energy's commercialization with a single stock — like it or not.
Sentiment
Mostly NegativePublishers
19
Articles
62
Reach
81
