Trump Media and Technology and TAE Technologies announced on Wednesday that they have abandoned plans to carve out Truth Social and certain other media assets into an independent, publicly listed company.
The companies did not provide a reason for calling off the proposed spinoff of the conservative-oriented social media platform. On the market, shares of Trump Media and Technology were marginally lower on Wednesday. The stock has fallen by more than 38% so far in 2026.
Both firms emphasized that the decision to halt the spinoff does not affect their intention to complete the merger between Trump Media and TAE Technologies. The companies said they remain committed to the transaction and continue to expect the deal to close in the fourth quarter of this year or earlier.
In December, the two parties agreed to an all-stock merger that they said carried a valuation in excess of $6 billion. That transaction shifts the combined company's strategic emphasis toward fusion energy, with the stated aim of creating a publicly traded business focused on developing utility-scale power plants to meet rising electricity demand, including demand from artificial intelligence data centers.
TAE Technologies, which is headquartered in California, is engaged in developing nuclear fusion technology. The company has raised more than $1 billion from investors, with backers that include Alphabet's Google and Chevron.
Trump Media and Technology has faced obstacles growing its media operations, citing stiff competition from larger social networks and uneven user growth. Earlier this year, the company installed Kevin McGurn as interim chief executive officer; McGurn has been an adviser to Trump Media since December 2024.
The announcement leaves unanswered questions about why the spinoff was canceled and about the near-term path for the firm's media assets. For now, the public-facing position is that the merger with TAE remains the primary corporate objective and that closing is anticipated before the end of the year.
Market reaction and context
Investors reacted modestly to the decision, with Trump Media shares trading slightly down on the day of the announcement. The company’s share price performance this year reflects broader pressures the media unit has encountered while attempting to expand its user base in a highly competitive social media market.
What the merger emphasizes
- The combined company will emphasize development of fusion energy technologies and the creation of utility-scale power plants.
- The deal, agreed in December, is an all-stock transaction valued at more than $6 billion.
- TAE Technologies has attracted over $1 billion in investment commitments from backers including Google and Chevron.
The companies’ statement did not contain additional operational details about how the merged entity will manage the media assets going forward or whether any alternative corporate restructurings remain under consideration.