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Donald Trump’s Social-Media Company Is in Big Trouble

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2 years ago

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Donald Trump wanted to disrupt the hegemony of the Silicon Valley giants. Things don’t seem to be going the way the former president wanted.

Donald Trump has never hidden his objective in launching Truth Social: to disrupt the hegemony of the giants of Silicon Valley.

The former president did not take well to what appeared to be a humiliation: He was ejected from the major social-media platforms that influence opinions and trends in public life.

One day after the events of Jan. 6, 2021 — when his supporters stormed the Congress in Washington — Facebook  (META) – Get Meta Platforms Inc. Report, YouTube  (GOOGL) – Get Alphabet Inc. Report and Twitter  (TWTR) – Get Twitter Inc. Report, the three main social networks in the U.S., banned him

The real estate developer, who has millions of loyal supporters and fans, then promised to launch his own social network as a place of free expression for conservatives and to continue to build the Trump brand.

When the platform launched in February, Truth Social drew flurry of downloads on Apple’s  (AAPL) – Get Apple Inc. Report iOS app. It was rolled out to all U.S. iOS users in May. But the euphoria seems to have died down.

Not on Google Play

Truth Social has not yet been launched on Google’s Android operating system, which runs the vast majority of smartphones. That’s because Google says it violates its content moderation policy like physical threats and incitement to violence.

“On Aug. 19 we notified Truth Social of several violations of standard policies,” Google told the BBC. “Having effective systems for moderating user-generated content is a condition of our terms of service for any app to go live on Google Play,” the company added.

For its part, Trump Media & Technology Group, founded by the former president and the parent of Truth Social, said in a news release that “TMTG has continuously worked in good faith with Google to ensure that the Truth Social Android App complies with Google’s policies without compromising our promise to be a haven for free speech,

“As our users know, Truth Social is building a vibrant, family-friendly environment that works expeditiously to remove content that violates its Terms of Service – which independent observers have noted are among the most robust in the industry.”

“By contrast TMTG notes that this viral, four-year-old tweet threatening nuclear war on law-abiding citizens remains up on Twitter for Android without consequence,” the company added.

Google didn’t immediately respond to a request for comment from TheStreet.

Zero Revenue

Digital World Acquisition (DWAC) , the blank-check company that is supposed to merge with TMTG, is also in a fragile financial situation.

The firm reported a net loss of $6.2 million for the 2022 first half due to general and administrative costs, according to a Securities and Exchange Commission filing. This loss was five times the year-earlier loss of $1.2 million.

The company is burning cash: It had $3 million on hand at the end of the period compared with $24.3 million at the end of first-half 2021. And in 2022 through the close of Wednesday trading, the shares were down 53%.

DWAC does not currently generate any revenue. But what is more worrying is that the firm must raise fresh money.

“We believe we will need to raise additional funds in order to meet the expenditures required for operating our business,” the firm said.

“Additionally, if our estimate of the costs of identifying a target business, undertaking in-depth due diligence and negotiating a business combination are less than the actual amount necessary to do so, we may have insufficient funds available to operate our business prior to our business combination.”

Basically, DWAC says it may not have enough cash to continue operating before it closes its merger with TMTG.

“Moreover, we may need to obtain additional financing either to complete our business combination or because we become obligated to redeem a significant number of our public shares upon consummation of our business combination, in which case we may issue additional securities or incur debt in connection with such business combination.”

Legal Headaches

DWAC is also facing two SEC investigations looking at whether the company improperly negotiated with Truth Social before its IPO in 2021. The regulator issued subpoenas to the company and to TMTG, according to the SEC filing.

The firm said it’s “cooperating with an SEC investigation, including responding to several document requests and subpoenas from the SEC to us and certain of our directors seeking various documents and information regarding, among other things, meetings of our Board of Directors; communications with and the evaluation of potential targets, including TMTG; communications relating to TMTG; agreements with and payments made to certain advisors.”

Finally, Truth Social owes $1.6 million to one of its vendors, RightForge, an internet infrastructure company for conservatives, sources told Axios.

One of the sources told the news outlet that if Truth Social fails to come up with the cash to pay back RightForge, the dispute could move to arbitration.

Culled from The Street (By Luc Olinga)

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Lifestyle

Photographer alleges he was forced to watch Megan Thee Stallion have sex and was unfairly fired

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1 day ago

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April 25, 2024

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LOS ANGELES (AP) — A photographer who worked for Megan Thee Stallion said in a lawsuit filed Tuesday that he was forced to watch her have sex, was unfairly fired soon after and was abused as her employee.

In the suit filed in Los Angeles Superior Court, Emilio Garcia said that after a night out in 2022 in Ibiza, Spain, he was in an SUV with the hip-hop star when she began having sex with another woman right next to him. He was unable to get out of the moving car, and would have been in the middle of nowhere in a foreign country even if he was able. Garcia was “embarrassed, mortified and offended throughout the whole ordeal,” according to the lawsuit.

Alex Spiro, Megan’s lawyer, said she would fight the lawsuit in court.

“This is an employment claim for money — with no sexual harassment claim filed and with salacious accusations to attempt to embarrass her,” Spiro said.

The next day Megan told Garcia never to discuss what he saw and berated and fat-shamed him, the lawsuit said. The complaint also said Garcia, who had already considered quitting because he was overworked and underpaid in a hostile work environment aggravated by Megan’s possessiveness and abusiveness, was misclassified as an independent contractor but treated as an exclusive employee.

Garcia raised those issues in the conversation with Megan, and was fired the following day after four years of working for her, the suit said. He has since filed a job discrimination complaint with the California Civil Rights Department.

The lawsuit, first reported by NBC News, names as defendants Megan, whose legal name is Megan Pete; her companies Megan Thee Stallion Entertainment and Hot Girl Touring; and her label, Roc Nation. A defense response has yet to be filed. There was no immediate response to an email seeking comment from a representative of Roc Nation.

Garcia is seeking financial damages to be determined at trial, alleging he has suffered severely both emotionally and physically because of his treatment on the job, the firing and having to witness the scene in the SUV.

Megan, 29, was previously involved in major legal drama — and underwent a torrent of online abuse — as the victim of a shooting by rapper Tory Lanez, who a jury found fired at her feet on a street in the Hollywood Hills in 2020. She testified at the trial where jurors convicted Lanez of three felonies and a judge sentenced him to 10 years in prison.

Already a major rising artist at the time of the shooting, Megan has since become one of hip-hop’s biggest stars. She won a Grammy for best new artist in 2021, and she had No. 1 singles with “Savage,” featuring Beyoncé, and as a guest on Cardi B’s “WAP.”

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Body of O.J. Simpson to be cremated this week; brain will not be studied for CTE

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1 week ago

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April 16, 2024

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April 15 (UPI) — The body of O.J. Simpson, who died last week at the age of 76, is to be cremated, a lawyer representing the ex-football superstar’s estate said, adding his brain will not be donated for research.

Malcolm LaVergne, Simpson’s longtime attorney and executor, told the New York Post that his client’s body is to be cremated Tuesday in Las Vegas.

He said Simpson’s family also gave a “hard no” to scientists seeking to examine the former running back’s brain for chronic traumatic encephalopathy, which is better known as CTE.

CTE is a rare and little understood brain disorder that is likely caused by repeated blows to the head. According to the Mayo Clinic, CTE results in the death of nerve cells in the brain and the only way to definitively diagnose it is with an autopsy of the organ after death.

Memory and thinking problems, confusion, personality changes and erratic behavior, including aggression, depression and suicidal ideation, are among CTE’s symptoms, the Alzheimer’s Association said.

The disease has been found in those who play contact sports, including football and hockey.

LaVergne confirmed to NBC News on Sunday that at least one person has called seeking Simpson’s brain.

“His entire body, including his brain, will be cremated,” he said.

Simpson died Wednesday following a battle with cancer.

Known by the nickname “The Juice,” Simpson was a NFL superstar during the 1970s, which made him a household name that propelled him into film and television during the next decade.

But his stardom would come crashing down in the mid-1990s when he was accused of killing his ex-wife Nicole Brown Simpson and her friend Ron Goldman.

His high-profile trial lasted months, but ended with his acquittal.

In 2008, he was found guilty on a dozen charges, including kidnapping and armed robbery, and was paroled in 2017 after serving nine years of his 33-year sentence.

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Africa

Donors raise more than 2 billion euros for Sudan aid a year into war

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1 week ago

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April 16, 2024

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PARIS/CAIRO, April 15 (Reuters) – Donors pledged more than 2 billion euros ($2.13 billion) for war-torn Sudan at a conference in Paris on Monday, French President Emmanuel Macron said, on the first anniversary of what aid workers describe as a neglected but devastating conflict.
Efforts to help millions of people driven to the verge of famine by the war have been held up by continued fighting between the army and the paramilitary Rapid Support Forces (RSF), restrictions imposed by the warring sides, and demands on donors from other global crises including in Gaza and Ukraine.
Conflict in Sudan is threatening to expand, with fighting heating up in and around al-Fashir, a besieged aid hub and the last city in the western Darfur region not taken over by the RSF. Hundreds of thousands of displaced people have sought refuge in the area.
“The world is busy with other countries,” Bashir Awad, a resident of Omdurman, part of the wider capital and a key battleground, told Reuters last week. “We had to help ourselves, share food with each other, and depend on God.”
In Paris, the EU pledged 350 million euros, while France and Germany, the co-sponsors, committed 110 million euros and 244 million euros respectively. The United States pledged $147 million and Britain $110 million.
Speaking at the end of the conference, which included Sudanese civilian actors, Macron emphasized the need to coordinate overlapping and so far unsuccessful international efforts to resolve the conflict and to stop foreign support for the warring parties.
“Unfortunately the amount that we mobilised today is still probably less than was mobilised by several powers since the start of the war to help one or the other side kill each other,” he said.
As regional powers compete for influence in Sudan, U.N. experts say allegations that the United Arab Emirates helped arm the RSF are credible, while sources say the army has received weapons from Iran. Both sides have rejected the reports.
The war, which broke out between the Sudanese army and the RSF as they vied for power ahead of a planned transition, has crippled infrastructure, displaced more than 8.5 million people, and cut many off from food supplies and basic services.
“We can manage together to avoid a terrible famine catastrophe, but only if we get active together now,” German Foreign Minister Annalena Baerbock said, adding that, in the worst-case scenario, 1 million people could die of hunger this year.
The United Nations is seeking $2.7 billion this year for aid inside Sudan, where 25 million people need assistance, an appeal that was just 6% funded before the Paris meeting. It is seeking another $1.4 billion for assistance in neighbouring countries that have housed hundreds of thousands of refugees.
The international aid effort faces obstacles to gaining access on the ground.
The army has said it would not allow aid into the wide swathes of the country controlled by its foes from the RSF. Aid agencies have accused the RSF of looting aid. Both sides have denied holding up relief.
“I hope the money raised today is translated into aid that reaches people in need,” said Abdullah Al Rabeeah, head of Saudi Arabia’s KSRelief.
On Friday, Sudan’s army-aligned foreign ministry protested that it had not been invited to the conference. “We must remind the organisers that the international guardianship system has been abolished for decades,” it said in a statement.

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