Trump Media & Technology Group, TAE Technologies, and Texas Ventures Acquisition III have collectively decided to stop pursuing a spinoff of media assets that would have included the Truth Social platform. The announcement, made on June 10, effectively kills a deal structure that was only a few months old.

The original plan, first disclosed on February 27, envisioned spinning Truth Social and related media properties into a standalone publicly traded company, referred to as SpinCo, through a reverse merger with Texas Ventures Acquisition III. That plan is now dead. No specific reasons were given for walking away from it.

From spinoff to streamlining

The spinoff was always supposed to be a sidecar to a much larger transaction: TMTG’s merger with TAE Technologies, a fusion energy company. That merger, first announced in December 2025 and valued at over $6 billion, is still on track and expected to close in mid-2026.

The original structure was ambitious. TMTG would merge with TAE to create what the companies described as a leading publicly traded fusion power company. Simultaneously, Truth Social and other media assets would be carved out into a separate entity via the reverse merger with Texas Ventures, a special purpose acquisition company.

Under the terms of the broader merger, TAE and TMTG shareholders are projected to hold approximately 50% of the combined entity. That ownership split remains unchanged by the spinoff’s cancellation.

Instead of holding shares in a pure-play fusion company, TMTG investors will now own a piece of a hybrid entity that combines experimental energy technology with a social media platform.

Why the pivot matters

By dropping the spinoff, TMTG and TAE can channel resources toward closing the core merger without the distraction of simultaneously birthing a second public company. Spinning Truth Social off into its own publicly traded company would have required its own SEC filings, its own corporate governance structure, its own investor relations apparatus.

The lack of any cryptocurrency or digital asset component in this restructuring is also worth noting. TMTG had previously signaled interest in launching a shareholder token. That idea appears to have been shelved, at least for now, as the company opts for a more traditional corporate structure.

What this means for investors

For current TMTG shareholders, the abandoned spinoff changes the risk profile of what they’re holding. Originally, they were on track to receive shares in two separate companies, each with a distinct strategy. Now they’ll own a single entity that straddles social media and fusion energy.

TAE Technologies has been backed by prominent investors including Google and Chevron. The merger with TMTG was framed as a way to give TAE access to public capital markets. TMTG itself gained public attention following its merger with a special purpose acquisition company in 2024 under the ticker DJT.