An investment company created by two of Truth Social’s cofounders has unloaded more than 7.5 million shares in Donald Trump’s social media company, marking the first insider transaction since the company’s lockup agreement expired last week.
United Atlantic Ventures — which was created by former “Apprentice” contestants and Trump Media cofounders Andy Litinsky and Wes Moss — sold 7,525,000 shares of the social media company, according to a Securities and Exchange Commission filing.
Based on the company’s current stock price, the 5.5% stake in the company was worth more than $100 million.
Litinsky and Moss were key players in the creation of Trump Media, the parent company of Truth Social, but they have been embroiled in legal battles with the company over the last year. Both men argued that the company tried to deprive them of their shares, while Trump Media accused them of mismanagement that delayed the merger in March that took the company public.
In September, a Delaware judge ruled in favor of United Atlantic Ventures, clearing the way for it to eventually sell its shares.
In this photo illustration the icon of the app TruthSocial is pictured on a smartphone display on Aug. 22, 2024 in Berlin.
Florian Gaertner/Getty Images
The SEC filing listed Litinsky as the managing member of United Atlantic Ventures. A lawyer for the company did not immediately respond to a request for comment from ABC News.
Shares in Truth Social have hovered around $14 in the week following the expiration of the company’s lockup provision, which prevented Trump and other early investors from selling any of their shares for the six months following the company’s public offering.
Investors have so far shown little reaction to the news of the 7.5 million shares being sold. Trump himself — who has vowed not to sell his shares — has so far stuck to that promise.
The co-founders of Truth Social, the new social media platform launched by former President Donald Trump, have recently sold $100 million worth of shares in the company. This move has raised eyebrows and sparked speculation about the future of the platform.
The co-founders, former Trump campaign manager Brad Parscale and tech entrepreneur Bill White, sold a significant portion of their holdings in Truth Social in a private transaction. This sale comes just months after the platform’s highly anticipated launch in February, which saw a surge in sign-ups but also faced technical glitches and criticism for its content moderation policies.
The sale of shares by the co-founders has led to questions about their confidence in the long-term success of Truth Social. Some analysts believe that the move could signal concerns about the platform’s ability to compete with established social media giants like Facebook and Twitter, as well as newer platforms like Clubhouse and TikTok.
However, others argue that the sale could simply be a strategic move to raise capital for further development and expansion of Truth Social. The platform is still in its early stages and faces stiff competition in the crowded social media landscape, so additional funding could be crucial for its growth and sustainability.
Despite the uncertainty surrounding the sale of shares by the co-founders, Truth Social continues to attract attention and generate buzz among conservative users who are looking for an alternative to mainstream social media platforms. The platform has positioned itself as a haven for free speech and a place where users can express their views without fear of censorship or de-platforming.
It remains to be seen how the sale of shares will impact the future of Truth Social and whether it will help the platform establish itself as a viable competitor in the social media space. In the meantime, users and investors will be watching closely to see how the platform evolves and whether it can live up to its promise of being a platform for truth and free expression.
