Trump Media to Merge With Fusion Firm TAE Technologies in $6B Deal
In a dramatic strategic pivot, the parent company of Truth Social will enter the high-risk, capital-intensive world of nuclear fusion energy through an all-stock transaction.
Trump Media & Technology Group (NASDAQ: DJT), the parent company of the social media platform Truth Social, has announced a definitive agreement to merge with TAE Technologies, a private nuclear fusion research company, in an all-stock deal valuing the target enterprise at over $6 billion.
The stunning move, announced via a press release on Thursday morning, marks a radical strategic pivot for a company that has been defined by its flagship social media product and its close association with former President Donald Trump. The combined entity has set a highly ambitious goal: to site and begin construction of the world's first utility-scale fusion power plant in 2026.
This merger represents a significant shift away from Trump Media's original, and so far struggling, business model. The company's public filings have revealed a challenging financial picture. For the first quarter of 2024, Trump Media reported revenues of just $770,500 against a staggering net loss of $327.6 million. For the full year 2023, the company generated about $4 million in revenue while incurring losses of over $58 million, according to CBS News.
The market has valued DJT with extreme volatility since its public debut in March 2024 through a merger with the special-purpose acquisition company (SPAC) Digital World Acquisition Corp. After initially soaring to a market capitalization that briefly topped $10 billion, the stock has since pulled back significantly. As of Wednesday's close, DJT's market capitalization stood at approximately $3 billion, meaning it is attempting to acquire a company valued at twice its own worth using its stock as currency.
Shares of DJT were active in pre-market trading, with investors attempting to price in the complex and unexpected announcement, as noted by CNBC among other outlets covering early market movers.
TAE Technologies, founded in 1998, is one of the oldest and most prominent private companies in the race to commercialize nuclear fusion—a process that seeks to replicate the power of the sun to create a source of nearly limitless clean energy. The field is notoriously difficult and capital-intensive, with most experts believing that commercially viable fusion power is still decades away. The joint announcement's goal of beginning power plant construction in 2026 is exceptionally aggressive by industry standards.
The all-stock nature of the transaction means that Trump Media will use its shares to acquire TAE. This will lead to massive dilution for existing DJT stockholders, as a huge number of new shares will be issued to the owners of TAE Technologies to complete the transaction.
The move is the latest chapter in the unusual history of DJT as a public entity. Its initial SPAC merger was plagued by years of regulatory delays before the company finally began trading under its new ticker, which saw it become one of the market's most prominent and volatile meme stocks.
By merging with a deep-tech, long-horizon company like TAE, Trump Media is fundamentally altering its investment thesis. It is effectively using the high-flying valuation awarded by public market investors—a valuation tied more to political affiliation and retail sentiment than to financial performance—to acquire a tangible, albeit high-risk, technology asset. The success of the new, combined company will now hinge not on growing a social media user base, but on achieving one of the most difficult scientific and engineering feats ever attempted.