Three months after proposing a spin-off of Truth Social into a separate public company, Trump Media & Technology Group and TAE Technologies have decided not to proceed with the plan.
- The two companies had discussions about the potential spin-off of Truth Social with Texas Ventures Acquisition III, a special purpose acquisition company.
- Trump Media & Technology and TAE Technologies reaffirmed plans to complete their proposed merger by the fourth quarter of 2026.
- The merger, first announced in December 2025, is expected to create a fusion energy firm valued at over $6 billion.
Trump Media & Technology Group (DJT) was in focus after the company and TAE Technologies reaffirmed plans to complete their proposed merger by the fourth quarter of 2026 and announced they would no longer pursue a previously discussed spin-off of media assets, including Truth Social, into a separate publicly traded company.
DJT shares climbed marginally higher in early trade on Wednesday, having touched an all-time low in the previous session, before inching higher.
Spin-Off Plans Scrapped
On Wednesday, the companies said that they decided not to move forward with their plans to spin off certain media assets into a separate publicly traded company. The companies said the structure was intended to create businesses with distinct strategic focuses.
Instead, management said the board of the combined company will review strategic options for its legacy businesses after the merger closes. These options could include actions related to Trump Media & Technology’s media assets, the company said.
Trump Media & Technology Group and TAE Technologies first announced discussions about the potential spin-off of Truth Social with Texas Ventures Acquisition III in February. Under the plan, shares of Truth Social would have been distributed to existing Trump Media shareholders before the TAE merger closed.
The social media platform would then have merged with Texas Ventures III, a Nasdaq-listed special purpose acquisition company. After the spinoff, Trump Media would have retained TAE’s fusion energy business along with certain existing company assets.
What Are The Terms Of The DJT-TAE Deal?
The merger, first announced in December 2025, is expected to create a fusion energy firm valued at more than $6 billion.
The combined company plans to leverage TMTG’s financial resources and TAE’s fusion technology expertise, with the long-term goal of developing utility-scale fusion power plants. Upon closing, shareholders of TMTG and TAE are expected to each own about 50% of the combined company on a fully diluted basis.
What Does Retail Think Of DJT?
Retail sentiment surrounding DJT on Stocktwits turned ‘neutral’ from ‘bullish’ a day earlier, while message volumes increased by nearly 90% over a 24-hour period. DJT was also among the top trending tickers on the platform.
DJT shares have slumped nearly 39% so far this year.
Read also: Why Did CRVO Stock Crash 22% In Pre-Market Trading Today?
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