Market losses of $6 billion lead to the ousting of the CEO of 'Trump Media'

SadaNews - The company "Trump Media & Technology," owner of the Truth Social platform, announced that it will replace its former CEO, a former Congressman and one of President Trump's prominent supporters, after a collapse in share price resulted in billions of dollars in losses for investors.

The company stated that Devin Nunes, the former representative from California during Donald Trump's first term, will be temporarily replaced by the CEO of the digital media sector, Kevin McGurn, in the CEO position, without clarifying the reason for his departure or specifying a timeline for appointing a permanent replacement.

This change comes after a sharp decline in the company’s shares by 67%, leading to losses exceeding $6 billion from investors’ wealth, despite the stock experiencing a significant rise ahead of Trump’s re-election in November 2024.

"Trump Media" was established by the Trump family as an alternative to major social media platforms that banned the American president from posting after the Capitol siege on January 6, 2021.

The company has marketed itself as a "free speech" platform competing with Facebook and X (formerly Twitter), with later ambitions to rival major streaming platforms like Netflix.

Despite the initial rise in stock value, the platform has struggled to attract a wide audience, even with frequent use by Trump for major political advertisements, which government ethics experts have criticized as a conflict of interest with the presidency.