Andrew Litinsky, a major shareholder in Donald Trump's social media company, Trump Media & Technology Group (TMTG), has sold almost his entire stake, worth nearly $100 million. Litinsky, who co-founded TMTG and appeared as a contestant on Trump's show The Apprentice, was one of the key figures behind Truth Social, the platform created in the wake of Trump's ban from Twitter. Regulatory filings released Thursday revealed that Litinsky's firm, United Atlantic Ventures (UAV), now holds just 100 shares, a dramatic drop from the more than 7.5 million shares it owned as of late March.
The decision to sell comes at a critical time for Trump Media, whose stock has been in decline over the past few months. Once valued at over $6 billion, Trump's own stake in the company has plummeted in value, now estimated at around $1.6 billion based on Thursday's closing price of $13.98 per share.
Despite the significant sale, Litinsky's divestment isn't entirely unexpected. Tensions between Litinsky and Trump Media have been escalating for months, culminating in a legal battle over control and ownership stakes in the company. Trump Media sued Litinsky and his partner, Wesley Moss, earlier this year, accusing them of making "reckless and wasteful decisions" that harmed the company. The lawsuit also demanded that Litinsky and Moss return their shares, which were poised to increase in value as part of a merger deal that would take TMTG public.
In response, Litinsky and Moss filed their own lawsuit in Delaware, arguing that Trump planned to dilute their shares once the post-merger lock-up period expired in September. The lock-up period had previously prevented insiders from selling their stock, but with the restriction lifted, Litinsky's sale signals a possible shift in the company's ownership dynamics.
The timing of Litinsky's sale has raised questions about the future of Trump Media and its flagship platform, Truth Social. Launched as a response to Trump's social media bans following the January 6 Capitol riots, Truth Social was initially seen as a potential game-changer in conservative media circles. However, its performance has been volatile, and the legal battles between its founders and Trump have cast doubt on the platform's long-term viability.
Trump himself has remained adamant that he will not sell his shares in the company. His 114.75 million shares represent a dominant stake, making him the largest single shareholder. While the stock has lost significant value, Trump has publicly declared his commitment to the platform, stating earlier this month that he has no intention of selling.
Litinsky's exit from TMTG marks the latest chapter in a saga that began with high expectations but has been marred by legal disputes and financial turbulence. A graduate of Harvard University, Litinsky first gained prominence in 2004 as the youngest contestant on The Apprentice, where his business acumen caught Trump's eye despite being fired during the show. He later joined the Trump Organization as a project manager and became instrumental in the development of Truth Social.
The lawsuits between Litinsky and Trump Media have underscored the deepening rift between the company's founders. Trump Media's suit accused Litinsky and Moss of mishandling the company's finances, while Litinsky and Moss argued that Trump sought to diminish their ownership stakes through a series of questionable moves post-merger.
As of now, the future of Trump Media remains uncertain. The company has not commented publicly on Litinsky's share sale, and UAV's attorney did not respond to requests for comment. Despite the turmoil, Trump Media continues to operate, with Truth Social maintaining a dedicated, albeit niche, user base.
Financial analysts have expressed concern over the long-term outlook for TMTG, especially in light of its declining stock price and the ongoing legal battles. The company, which once had ambitions to rival major social media platforms, now faces challenges not only in the courtroom but also in maintaining investor confidence.
