In an interview on Thursday, billionaire investor Barry Diller referred to Trump Media, the parent company of Truth Social, as a “scam,” according to CNBC.
“It’s all a scam, just like every other scheme he’s ever been a part of,” Diller declared during his appearance on CNBC’s “Squawk Box.” He was referring to former President Donald Trump and his latest venture, Trump Media & Technology Group.
According to Diller, those who are investing in the company after its impressive performance in the stock market debut are simply “dopes.”
Barry Diller expressed his skepticism about purchasing a company with minimal revenue, questioning the rationale behind assigning a value to it. He pondered, “Who would buy a company that only generates $30 in revenue? How can one possibly determine its worth?” Diller’s remarks highlight his doubts regarding the viability of investing in such a company.
“They’re purchasing it for different motives, similar to how they acquired theaters when there was no demand for them or when they invested in GameStop. Frankly, it’s foolish—engaging in such nonsensical activities,” Diller expressed. He was referring to the instance when Reddit users bought and held onto numerous shares in companies like GameStop and AMC during the peak of the COVID-19 pandemic.
Trump Media & Technology Group ended its first week of trading with a closing price of $62 per share, as per regulatory filings. This is noteworthy considering the company incurred a loss of $58 million in the previous year.
In a recent social media post, Trump confidently asserted that his platform remains “very solid,” even in light of the company’s reported losses in 2023.
In a post on Truth Social, Trump criticized the competitors of the platform, particularly those from the Radical Left Democrats Party, who are failing in their endeavors. He pointed out that these competitors often rely on their “disinformation machine” to deceive people into believing that TRUTH SOCIAL is not as impactful in spreading information as other platforms. However, Trump clarified that such claims are false.
According to the former president, Truth Social boasts an impressive $200 million in cash and, notably, zero debt.
The Trump Media & Technology Group responded to the criticism, stating in an email to The Hill that it is not surprising to see strong opponents of Trump and left-leaning individuals expressing outrage now that Truth Social has become a publicly traded company. They emphasized that despite this, they remain committed to not suppressing political expression that challenges the narratives they seek to promote.
