Former President Donald J. Trump’s social media company, Truth Social, made headlines this week as it went public, with supporters and investors driving the value of the loss-making firm through the roof. On the first day of public trading, Mr. Trump saw a paper gain of $4.6 billion, sparking speculation about the potential implications of his political success on the company.
Experts raised concerns about the ethical implications of Mr. Trump’s ownership of a publicly traded media company, suggesting that it could provide a straightforward route for foreign leaders or special interests to influence him. With Mr. Trump’s control of the company, questions similar to those raised during his presidency about conflicts of interest and foreign influence could resurface.
Corporations and other players seeking to sway Mr. Trump could potentially buy advertising on Truth Social or purchase shares in the company. As the nation’s leader, Mr. Trump’s use of the platform could drive traffic and revenue, further complicating the ethical considerations surrounding his ownership.
While presidents are not covered by federal conflict-of-interest laws, efforts to address these concerns during Mr. Trump’s first term were unsuccessful. The potential for foreign governments to curry favor with the president through financial means raises questions about the need for legislative action to enforce ethical standards.
Critics of Mr. Trump have previously filed lawsuits alleging violations of the emoluments clause, which prohibits presidents from profiting from their official position. However, these lawsuits were dismissed or declared moot, leaving the issue unresolved.
If re-elected, Mr. Trump’s use of Truth Social to communicate could raise further ethical concerns, with experts drawing parallels to other world leaders who controlled media outlets while in office. The potential for conflicts of interest and unfair advantages for Truth Social’s competitors could become a focal point of criticism.
Despite these concerns, Mr. Trump’s personal involvement in Truth Social is seen as critical to its success. The company’s market value skyrocketed after the merger, highlighting the influence of Mr. Trump’s brand and following.
As Mr. Trump navigates legal challenges and restrictions on cashing out his shares, the future of Truth Social remains uncertain. With a board stacked with allies and staunch supporters, the company’s trajectory will likely continue to be closely watched by critics and supporters alike.
