IAC Chairman Diller Calls Trump Media ‘Scam’ & Shareholders ‘Dopes’

Barry Diller has a rather dim view of the stockholders of Trump Media.

The Truth Social app, launched last week by Trump Media & Technology Group, was an enormous hit, drawing in both casual investors and those who are crazy with “meme stocks.”

However, the ex-president’s social media platform’s worth has fallen since his short stint in the limelight.

In a recent interview, media tycoon Diller—who also chairs IAC and Expedia Group—said he was pessimistic about the stock’s future and seemed perplexed by its early enthusiasm.

Diller’s skepticism about the issue was evident during his appearance on Thursday’s Squawk Box on CNBC, where he pulled no punches.

A recent SEC filing shows that TMTG’s total revenue for 2023 was a meager $4.1 million. The corporation recorded a loss of $58 million over that same time. Diller says any reasonable investor would not interpret such figures as a “buy” signal.

There is zero income coming into the business.

According to Diller, who expressed his doubt, those who think Trump Media is a good business shouldn’t prioritize financial security when purchasing shares. He called them “dopes” and said they bought it for other reasons.

Diller drew parallels between the rise of Truth Social and the enthusiasm around GameStop and other meme-driven stock prices.

According to Diller, there was little room for growth on the platform.

He asked why it would be bigger and mentioned that many people are enthralled by Donald Trump’s exciting campaign events right now; Trump was a major factor in the platform’s success.

For a short while, Trump’s net worth surpassed George Soros’s at $7.8 billion, thanks to Truth Social’s spectacular debut. On Friday, the Bloomberg Billionaires Index revealed that the sum had dropped to $6.4 billion, a dramatic decrease in only a few days.

Because of a “lock up” period, Trump cannot sell his shares for the next six months unless the board of directors makes an exception, which might make it difficult for him to realize immediate financial benefits from Trump Media.

The Trump Media stock began trading last week under the ticker symbol DJT. After briefly leveling out, the share price saw a substantial 50% increase, hitting close to $80.

Trump Media stock was trading at over $47 on Thursday morning.