Trump Media and Technology Group (NASDAQ: DJT) and TAE Technologies have scrapped plans to spin off the Truth Social platform and certain other media assets into a separate publicly listed company.
The two companies made the announcement on Wednesday, as reported by Reuters, but did not disclose any reasons for canceling the proposed spinoff of the conservative-focused social media platform.
Shares of Trump Media and Technology were marginally down on Wednesday following the news, extending a difficult stretch for the stock.
The stock has declined more than 38% so far in 2026, reflecting broader challenges the company has faced in scaling its media operations.
Trump Media and Technology, founded by U.S. President Donald Trump, stated it remains committed to completing its planned merger with TAE Technologies.
The company expects to close the transaction in the fourth quarter of this year or earlier, signaling confidence in the deal despite the scrapped spinoff.
In December, the two companies agreed to an all-stock merger valued at more than $6 billion, representing a significant strategic pivot for Trump Media.
The deal marks a shift toward fusion energy, with the combined entity aiming to become a publicly traded company focused on developing utility-scale power plants to meet rising electricity demand, including from artificial intelligence data centers.
TAE Technologies, based in California, develops nuclear fusion technology and has secured more than $1 billion in funding from investors including Alphabet’s Google and Chevron.
Trump Media has encountered persistent difficulties expanding its media business, facing stiff competition from larger social networks and inconsistent user growth that has weighed on investor sentiment.
Earlier this year, the company named Kevin McGurn as interim chief executive officer, a figure who has served as an adviser to Trump Media since December 2024.
The abandoned spinoff represents yet another strategic shift for a company that has struggled to define a clear path forward in the competitive social media landscape.
