Trump Media is “a rip-off,” and folks shopping for its high-flying inventory are “dopes,” IAC and Expedia Chairman Barry Diller stated Thursday in a scathing takedown of the social media firm whose majority shareholder is former President Donald Trump.
“I imply, it is ridiculous,” Diller stated on CNBC’s “Squawk Field” when requested about Trump Media. “The corporate has no income.”
“It is a rip-off, similar to all the pieces he is ever been concerned in is a few form of con,” he stated of Trump.
A Trump Media spokeswoman, in response to Diller’s feedback, stated, “It’s unsurprising to see die-hard Trump haters and leftwing flacks blow a gasket now that Fact Social has turn into a public firm that, nonetheless at the moment, refuses to suppress political expression that contradicts the narratives they need to implement.”
CNBC has requested remark from a spokesman for Trump, who’s the presumptive Republican presidential nominee.
When Trump Media started buying and selling final week with the ticker DJT, its share value rocketed up about 50% to shut to $80 earlier than settling down. As of Thursday morning, Trump Media shares had been promoting for almost $47.
That provides the corporate a whopping $6.4 billion market capitalization regardless of the very fact it had simply $4.1 million in income final yr, and its enterprise is concentrated on the Fact Social app, which has considerably fewer customers than main social media platforms.
Trump Media on Monday reported it had web losses of $58 million in 2023.
He in contrast the value run-up of Trump Media to the “meme inventory” frenzy in 2021, when the value of GameStop soared to almost $500 per share and AMC Leisure, a movie show firm, noticed its share value skyrocket to greater than $700.
GameStop shares had been promoting for lower than $12 per share in early buying and selling Thursday morning, and AMC shares for simply greater than $3.
“I feel they’re dopes,” Diller stated when requested why individuals are shopping for the corporate’s inventory.
“I imply, who would purchase an organization that actually, what does it have, $30 of income? Who might put a price on that?” Diller requested.
“They’re shopping for it for different causes, similar to they purchased theaters when there was no theater enterprise or purchased GameStop, no matter.”
“It is silly. Silly stuff,” he stated.
Requested if Trump Media might ever turn into a much bigger enterprise than it’s now, significantly if Trump is elected president later this yr, Diller flatly replied, “No … no.”
“Look, he is solely attention-grabbing now as a result of he is on the market entertaining the parents,” Diller stated. “I hope if he will get elected he simply performs golf for 4 years.”
