Feb 27 - Trump Media & Technology Group (TMTG) announced on Friday that it is engaged in talks with TAE Technologies and Texas Ventures Acquisition III about a proposal to spin off parts of its business, including the Truth Social platform, into a newly formed publicly traded company.
Under the structure being discussed, shares of the spun-off business would be allocated to eligible TMTG shareholders. After that distribution, the new company would merge with the special purpose acquisition company connected to the transaction. TMTG emphasized that the discussions are ongoing and that no definitive agreement has been signed.
Market reaction was negative in the session following the announcement, with TMTG shares trading down by more than 3% in afternoon trading.
The potential spin-off follows an earlier move by TMTG in December, when the company agreed to combine with TAE in an all-stock transaction valued at more than $6 billion. That December deal marked a strategic shift toward fusion energy and the formation of a publicly traded enterprise aimed at building utility-scale power plants to address rising electricity demand, a need that the company specifically cited as including demand from AI data centers.
TAE Technologies, identified in the discussions, is a California-based private developer of advanced nuclear fusion technology. The company has raised over $1 billion from investors, including Alphabet's Google and Chevron. TAE’s fusion approach is focused on producing electricity while minimizing the release of neutron radiation, an attribute the company says reduces the generation of radioactive waste.
Separately, material included with the announcement referenced investor tools evaluating the DJT ticker. A promotional note described an AI-powered stock selection product that assesses thousands of companies monthly on more than 100 financial metrics to surface candidates with favorable risk-reward profiles. The note cited past selections that included Super Micro Computer (+185%) and AppLovin (+157%) and posed a question about whether DJT is featured in current strategies.
TMTG’s commentary reiterated that talks are continuing and that no binding deal has been finalized.