Khaberni - "Trump Media & Technology", the owner of the "Truth Social" platform, announced a change in its executive leadership after a steep drop in its stock price, which resulted in billions of dollars in losses.
The company stated that Devin Nunes, the current CEO and former congressman from California during Donald Trump's first term, will leave his position. Kevin McGovern, the CEO of the digital media sector, will temporarily take over the CEO responsibilities, without revealing the reasons for this change or setting a date for appointing a permanent replacement.
According to the American news agency "Associated Press", this decision follows a roughly 67% drop in the company's stocks, leading to losses exceeding $6 billion in market value, despite the stock's significant rise just before Donald Trump's re-election in November 2024.
Freedom of Expression Platform
"Trump Media" was established by the Trump family as an alternative to major social media platforms, which banned his accounts following the events of the Capitol invasion on January 6, 2021. The company aimed to offer a platform based on the concept of "freedom of expression", competing with networks like Facebook and X, with later ambitions to expand into the streaming sector, to compete with major platforms like Netflix.
Despite the initial rises in stock value, the platform has not been able to achieve widespread spread, or attract a large user base, despite its frequent use by Trump to announce political positions and decisions.
Since its market listing about two years ago, the company has incurred losses exceeding $1.1 billion, while Nunes' compensations reached about $47 million in the year 2024, according to available data.
On the other hand, McGovern confirmed in a statement that the company is "set for a new launch phase", considering the "Truth Social" platform as "a strong brand and a powerful voice in the digital media world".
In recent periods, the company has expanded into new areas, including cryptocurrencies and prediction markets, and yet, it continues to face challenges related to financial performance and platform proliferation, at a time when both the Trump Organization and the White House deny any conflicts of interest between the president's political role and the family's business activities.
