“On August 19, we notified Truth Social of several violations of our standard policies,” Google said in a statement to TheStreet. “Having effective systems in place to moderate user-generated content is a condition of our terms of service for broadcasting any app on Google Play,” the company added.
For its part, the Trump Media & Technology Group, founded by the former chairman and parent of Truth Social, said in a press release that “TMTG is constantly working in good faith with Google to ensure that the Truth app Social Android complies with Google 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 its Terms of Service — which independent observers have noted is among the strongest in the industry.”
“However, TMTG notes that this viral, four-year-old tweet threatening nuclear war against law-abiding citizens remains open on Twitter for Android without consequence,” the company added.
Google did not immediately respond to a request for comment from TheStreet.
Digital world takeover
(the blank check company that is supposed to merge with TMTG, is also in a fragile financial state. DWAC)
The company reported a net loss of $6.2 million for the first half of 2022 due to general and administrative expenses, according to the Securities and Exchange Commission filing. That loss was five times greater than last year’s $1.2 million.
The company is burning cash: It had $3 million on hand at the end of the period compared with $24.3 million at the end of the first half of 2021. And in 2022 through Wednesday’s close, the shares had fallen 53%.
DWAC is currently not generating revenue. But what is more worrying is that the company needs to raise new money.
“We believe we will need to raise additional capital to cover the expenses required to operate our business,” the company said.
“Furthermore, if our estimate of the cost of identifying a target business, conducting due diligence and negotiating a business combination is less than the actual amount required to do so, we may have insufficient funds available to operate of our business before a business combination”.
Basically, DWAC says it may not have enough cash to continue operating before it closes on its merger with TMTG.
“In addition, we may need to obtain additional financing either to complete our business combination or because we are required to repurchase a significant number of our outstanding shares after the completion of our business combination, in which case we may issue additional securities or incur indebtedness in relation to such business combination”.
DWAC is also facing two SEC investigations looking into whether the company improperly traded with Truth Social ahead of its 2021 IPO. The regulator has issued subpoenas to the company and TMTG, according to the SEC filing.
The company said it is “cooperating with an SEC investigation, including responding to numerous document requests and subpoenas from the SEC to us and certain of our directors seeking various documents and information regarding, among other things, meetings of our Board of Directors; communications with and evaluation of potential targets, including TMTG, TMTG-related communications, agreements and payments made to certain consultants.”
Finally, Truth Social owes $1.6 million to one of its suppliers, RightForge, a conservative Internet infrastructure company, sources told Axios.
One of the sources told the news outlet that if Truth Social fails to come up with the cash to repay RightForge, the dispute could go to arbitration.