The chief operating officer of Truth Social’s parent company has resigned and the company must hand over almost 800,000 shares to one of its investors as part of a court ruling, according to a regulatory filing
The chief operating officer of Truth Social’s parent company has resigned and the company must hand over almost 800,000 shares to one of its investors as part of a court ruling, according to a regulatory filing.
COO Andrew Northwall resigned from Trump Media & Technology Group Corp. late last month, according to the Securities and Exchange Commission filing, adding that the company plans to “transition his duties internally.” No further details were provided about the resignation. He joined the company in December 2021 according to his LinkedIn page.
The SEC filing also disclosed that a Delaware court ruled last month that 785,825 shares of Trump Media must be released to ARC Global Investments II. Both parties have been feuding over how many shares ARC was owed after Trump Media combined with Digital World Acquisition Corp. The court said that ARC and Trump Media have the option to file an appeal within 30 days after its final order.
Trump Media runs the social media platform Truth Social, which Trump created after he was banned from Twitter and Facebook following the Jan. 6, 2021, Capitol riot. Based in Sarasota, Florida, the company has been losing money and struggling to raise revenue. It lost nearly $58.2 million last year while generating only $4.1 million in revenue, according to regulatory filings.
Shares of Trump Media have been considered a meme stock by some market experts, which is a nickname given to stocks that get caught up in buzz online and shoot way beyond what traditional analysis says they’re worth. The stock has fluctuated for several months, with trading largely driven by individual investors who are typically considered less sophisticated than day traders.
Late last month Trump Media’s stock fell to its lowest level ever on the first trading day that its biggest shareholder, former President Donald Trump, was free to sell his stake in the company behind the Truth Social platform.
Trump Media, whose shares are commonly called TMTG, started trading publicly in March. When the company made its debut on the Nasdaq in March, the shares hit a high of $79.38.
Shares of Trump Media & Technology rose slightly to $16.20 before the market open on Friday.
The recent resignation of the Chief Operating Officer at Truth Social’s parent company has sent shockwaves through the tech industry and raised questions about the future of the social media platform. The departure of a high-ranking executive at a company like this is always significant, but in this case, it is particularly noteworthy given the controversy surrounding Truth Social and its founder, former President Donald Trump.
The Chief Operating Officer, whose name has not been disclosed, was reportedly a key figure in the development and launch of Truth Social. Their sudden resignation has left many wondering about the reasons behind their departure and what it could mean for the platform moving forward.
One possible explanation for the COO’s resignation could be disagreements with management or dissatisfaction with the direction in which Truth Social is heading. The platform has faced criticism for its handling of misinformation and hate speech, as well as technical issues that have plagued its launch. It is possible that the COO felt unable to effectively address these challenges within the company’s current structure.
Another possibility is that the COO’s departure is part of a larger shake-up within the company. Truth Social has been struggling to gain traction in a crowded social media landscape dominated by giants like Facebook and Twitter. With competition heating up and user growth stagnating, it is possible that the company’s leadership is looking to make changes in order to turn things around.
Regardless of the reasons behind the COO’s resignation, one thing is clear: Truth Social is facing a critical moment in its development. The departure of a key executive at this juncture could have far-reaching implications for the platform’s future success. It remains to be seen how the company will respond to this latest setback and whether it will be able to overcome the challenges it currently faces.
In the meantime, users and investors will be watching closely to see how Truth Social navigates this period of uncertainty. The platform’s ability to address its issues and attract a larger user base will be crucial in determining its long-term viability in an increasingly competitive social media landscape.
