June 10 (Reuters) - Trump Media and Technology and TAE Technologies said on Wednesday that they had decided against spinning off Truth Social and certain other TMTG media assets into a new publicly listed company.
TMTG, founded by U.S. President Donald Trump and known for its conservative-focused Truth Social platform, has faced challenges scaling its media business amid competition from larger social networks and uneven user growth.
The companies did not provide a reason for walking back the idea
of a Truth Social spinoff.
TMTG said it remained focused on completing its merger with TAE and targets closing the deal in the fourth quarter of this year or sooner.
In December, TMTG agreed to merge with TAE in an all-stock deal valued at more than $6 billion, marking a pivot toward fusion energy and the creation of a publicly traded company focused on developing utility-scale power plants to help meet rising electricity demand, including from AI data centers.
California-based TAE Technologies is developing nuclear fusion technology and has raised more than $1 billion from investors, including Alphabet's Google and oil major Chevron.
Earlier this year, TMTG appointed Kevin McGurn as its interim CEO. McGurn has been an adviser to Trump Media since December 2024.
Shares of TMTG were down about 1% in premarket trading. They have fallen more than 38% this year.
(Reporting by Zaheer Kachwala in Bengaluru; Editing by Devika Syamnath and Anil D'Silva)
