“On August 19, we notified Truth Social of several default policy violations,” Google told TheStreet in a statement. “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.
Trump Media & Technology Group, founded by the former president and the parent company of Truth Social, in turn said in a press release that “TMTG has continued to work in good faith with Google to ensure that the Truth Social Android app complies with the 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 quickly to remove content that violates the Terms of Service – which independent observers have noted are among the most robust in the industry.”
“TmTG, on the other hand, notes that this viral, four-year-old tweet threatening nuclear war against law-abiding citizens will remain unaffected on Twitter for Android,” the company added.
Google did not immediately respond to a request for comment from TheStreet.
Digital World Acquisition
(the blank check company that would have to merge with TMTG is also in a fragile financial situation. DWAC)
The company reported a net loss of $6.2 million for the first half of 2022 from general and administrative expenses, according to a filing with the Securities and Exchange Commission. This loss was five times the loss of $1.2 million a year earlier.
The company is burning cash: It had $3 million on hand at the end of the period, compared to $24.3 million at the end of the first half of 2021. And in 2022 until the end of Wednesday trading, shares fell by 53%.
DWAC does not currently generate any revenue. But what’s even more worrying is that the company needs to raise fresh money.
“We believe we need to raise additional funds to cover the expenses needed to run our business,” the company said.
In addition, if our estimate of the costs of identifying a target company, conducting in-depth due diligence and negotiating a business combination is less than the actual amount required to do so, we may not have sufficient resources to business prior to our business combination.”
In short, DWAC says it may not have enough money to continue operating before closing its merger with TMTG.
“In addition, we may need additional funding to complete our business combination or because we will be required to repurchase a significant number of our public shares upon completion of our business combination, in which case we may issue additional securities or incur debt may make in connection with such a business combination.”
DWAC is also facing two SEC investigations into whether the company improperly negotiated with Truth Social ahead of its IPO in 2021. The regulator has sued the company and TMTG, according to the SEC filing.
The company said it is “cooperating with an SEC investigation, including responding to various SEC document requests and subpoenas from the SEC to us and certain of our directors requesting various documents and information about, among other things, meetings of our Board of Directors; communications with and evaluation of potential targets, including TMTG; communications related to TMTG; agreements with and payments to certain advisors.”
Finally, Truth Social owes $1.6 million to one of its suppliers, RightForge, an internet infrastructure company for conservatives, sources told Axios.
One of the sources told the news channel that if Truth Social fails to come up with the money to repay RightForge, the dispute could be referred to arbitration.