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Content creators surge past legacy media as news hits a tipping point

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Ameer Al-Khatahtbeh graduated in 2020 with a degree in journalism from Rutgers University. But instead of going to work in a traditional newsroom, he decided to build his own digital news brand catering to the Muslim community.

Four years later, Al-Khatahtbeh, 25, has amassed over 2 million followers on TikTok and more than 5.3 million on Instagram, where posts to his account, @Muslim, range from features on halal dating apps to the latest news from the Israel-Gaza war.

The young Palestinian-Jordanian entrepreneur is one of millions of independent creators reshaping how people get their news, especially the youngest viewers. News consumption hit a tipping point around the globe during the early days of the coronavirus pandemic, with more people turning to social media platforms such as TikTok, YouTube and Instagram than to websites maintained by traditional news outlets, according to the latest Digital News Report by the Reuters Institute for the Study of Journalism. One in 5 adults under 24 use TikTok as a source for news, the report said, up five percentage points from last year. According to Britain’s Office of Communications, young adults in the United Kingdom now spend more time watching TikTok than broadcast television.

This shift has been driven in part by a desire for “more accessible, informal, and entertaining news formats, often delivered by influencers rather than journalists,” the Reuters Institute report says, adding that consumers are looking for news that “feels more relevant.”

That’s certainly the experience of Al-Khatahtbeh, who built an audience upon the realization that “there was no mainstream outlet that focused on the Muslim community,” he said, which makes up a quarter of the world’s population. On TikTok alone, @Muslim’s follower count is larger than the average daily audience of 1.1 million people watching Fox News.

“These creator pages that cover news stories have more impact and reach than traditional media,” Al-Khatahtbeh said.

While a few national publications such as the New York Times and The Washington Post have seen their digital audiences grow, allowing them to reach hundreds of thousands more readers than they did a decade ago, the economics of journalism have shifted.

Well-known news outlets have seen a decline in the amount of traffic flowing to them from social media sites, and some of the money that advertisers previously might have spent with them is now flowing to creators. Even some outlets that began life on the internet have struggled, with BuzzFeed News shuttering in April, Vice entering into bankruptcy and Gawker shutting down for a second time in February.

The trend is likely to continue. “There are no reasonable grounds for expecting that those born in the 2000s will suddenly come to prefer old-fashioned websites, let alone broadcast and print, simply because they grow older,” Reuters Institute Director Rasmus Kleis Nielsen said in the report, which is based on an online survey of roughly 94,000 adults in 46 national markets, including the United States.

As a profusion of independent online producers of news programming has risen to prominence, the ramifications for society are still coming into focus. One positive impact is a more diverse media ecosystem, where a wider array of voices can challenge narratives fashioned by the gatekeepers of traditional journalism. But that also serves to undercut the authority of legacy news organizations, draining support from newsrooms that are a primary source of original reporting.

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While many online news creators are, like Al-Khatahtbeh, trained journalists collecting new information, others are aggregators and partisan commentators sometimes masquerading as journalists. The transformation has made the public sphere much more “chaotic and contradictory,” said Jay Rosen, an associate professor of journalism at New York University and author of the PressThink blog, adding that it has never been easier to be both informed and misinformed about world events.

“The internet makes possible much more content, and reaching all kinds of people,” Rosen said. “But it also makes disinformation spread.”

Johnny Harris, a journalist whose YouTube channel has more than 4 million followers, covers global news and geopolitical conflicts and conducts deep investigations into targets such as the Mormon Church and the flat earther movement. He rejects talk of a decline in American journalism.

“It’s always uncomfortable for me being in these rooms where there’s so much doom and gloom about journalism and the business of journalism,” Harris said. While journalism is experiencing “a major disruption,” he said, “this is a transformation to fit the technology and the preferences of audiences.”

Harris once worked for Vox, a news and opinion site founded in 2014 by journalists from The Post and Slate. His switch to YouTube has been so successful that he recently recruited another former Vox journalist to launch a second channel. He hopes eventually to build a network of journalist content creators and operate “effectively a music label for independent journalists.”

Harris won’t say how much he makes from YouTube, but the social media analytics platform Social Blade estimates that he could be earning more than $900,000 a year in advertising revenue alone.

Harris acknowledged “some scary downsides” to the changing media landscape, particularly the rampant spread of misinformation. But those downsides are countered by the benefits of serving “an audience with good journalism, in a way that they want to digest it,” he said.

Still, some content creators don’t follow the same ethical guidelines that are guideposts in more traditional newsrooms, especially creators who seek to build audiences based on outrage. That was the case last year, when actor Johnny Depp sued his actress ex-wife Amber Heard for defamation over a Post opinion column she wrote that said she’d been the victim of “domestic abuse.” Though the column did not name Depp, a jury in Fairfax County, Va., ruled in Depp’s favor.

The trial became a sensation on TikTok, Instagram and YouTube, as men’s rights activists, right-wing media figures and others with an ax to grind joined Depp’s legions of fans in lending their support. Many online commentators with no stake in the outcome played to this crowd, posting misogynistic pro-Depp content for profit. As the internet turned against Heard, trial coverage evolved into a smear campaign against a woman whose claims of abuse had been ruled “substantially true” in 2020 by the judge presiding over Depp’s failed libel suit against the Sun, a British tabloid.

One 20-year-old content creator in Los Angeles posted a dozen pro-Depp videos about the Virginia trial to Instagram, where he has more than 1.4 million followers. “Personally, what I’ve gained from it is money — as well as exposure from how well the videos do,” he told The Post at the time, adding: “If you hop on it early, it can basically change your life.”

Several social media platforms have emerged to serve conservative audiences. Rumble, BitChute and Telegram give right-wing creators a place to monetize, becoming magnets for accounts banned elsewhere, such as Alex Jones of Infowars who was banned from YouTube and other mainstream platforms for violating hate speech policies.

According to a recent Pew Research Center report, a majority of people who regularly get news from these alternative platforms (66 percent) “identify as Republicans or lean toward the Republican Party, in contrast with the news consumers on more established social media sites, who largely identify as Democrats or lean Democratic.”

Many news content creators on these platforms claim to be independent journalists but are backed by powerful special interest groups and conservative political activists. Rumble is financed by tech venture capitalists Peter Thiel and J.D. Vance, an Ohio Republican now serving in the U.S. Senate. These creators tend to focus on polarizing topics guaranteed to generate outrage among their conservative followers and attract coverage by national news outlets, feeding political divisions.

For example, after trans TikTok influencer Dylan Mulvaney put up a sponsored Instagram post for Bud Light, right-wing news content creators including Michael Knowles and Matt Walsh of the Daily Wire orchestrated a harassment campaign against her and a boycott of the beer. The boycott garnered widespread coverage in mainstream media, resulting in the CEO of Bud Light issuing an apology. Right-wing influencers also sparked a widely-covered controversy over Target merchandise during Pride Month in June.

‘A very dangerous place for news’

Navigating social media as events unfold in real time can be tricky. Tommy Marcus, 27, grew up in Tenafly, N.J., with a mother who worked as a teacher and a father who worked in sales. Marcus started his first blog, about the New York Mets, at age 11. By the time he was 12, his blog was receiving as many as 4,000 page views a day.

“People didn’t know how old I was at the time I was sharing news about the Mets,” he said. “I had a podcast on Blog Talk Radio; my voice hadn’t even cracked yet.”

At 17, Marcus became enamored with breaking news when a bomb exploded during the 2013 Boston Marathon, killing three people and injuring nearly 300. An avid Reddit user, Marcus skipped an entire day of classes to follow live updates about the bombing. He watched as the Reddit community pieced together information in real time, faster than any broadcast news organization. Instead of refreshing CNN.com, Marcus listened to a live stream of the Boston police scanner.

After several hours, the crowd on Reddit claimed to have identified the perpetrator, a missing Brown University undergrad whose family was immediately inundated online with attacks and death threats. Marcus later was horrified to learn the internet had named the wrong man.

“When it came out that it wasn’t the guy, and seeing what the internet had done to him and his family, that really stuck with me,” Marcus said. “That the internet can be a very dangerous place for news if it’s not used responsibly.”

Today, Marcus is best known as Quentin Quarantino, his alter ego on an Instagram news page started in the early days of the pandemic. All day every day, he shares breaking news updates on world events with his 1.1 million followers, “becoming an actual outlet for people to check news,” he said.

Other Instagram accounts including the Shade Room, Diet Prada, DeuxMoi and Comments By Celebs also deliver up-to-the-minute information via social media, becoming entertainment news powerhouses with dozens of staffers, millions of followers and related books and podcasts. Sports pages such as Hoops Nation break news faster than ESPN.

Mosheh Oinounou, a content creator and founder of Mo News, his own online news brand, worked for 15 years in traditional media at outlets including Bloomberg, CBS and Fox News, where he served as a campaign reporter. He helped launch CBSN, the organization’s digital streaming network, and was named executive producer of the “CBS Evening News” broadcast in 2018. He left the network in 2019.

When the pandemic hit, Oinounou was taking a break from television, so he began updating people about the news on his Instagram account. Before he knew it, thousands were tuning in. He now has over 416,000 followers on the app, a podcast, a newsletter and a paid premium tier for his news content. Fans can book shout-outs (short, personalized video messages) from Oinounou on the app Cameo. He’s also on TikTok.

“I felt like, okay, there are lifestyle influencers, there are travel creators, there are financial creators. And, like, why not, like, why not also do news on this platform?” he said. “I found a community that really likes this platform and this format, and frankly, really distrusts traditional media. They’re looking for a handful of individuals who they trust instead on various topics, and that includes the news.”

With deep roots in traditional journalism, Oinounou says he is meticulous in his reporting. He cites his sources, couches information and tries to provide unbiased, nonpartisan facts. He knows his audience would be larger if he leaned right or left, he said, but he doesn’t want to sacrifice his integrity — or lose the trust of the audience he’s built. After Hamas terrorists launched a cross-border attack into southern Israel on Oct. 7, CNN brought him to its morning program as a commentator.

“When you’re delivering the news in a country that has record-low trust in the media, part of that has to do with the lack of trust in larger brands,” Oinounou said. “I think it’s important that all journalists are building credibility directly with the audience.”

Many news creators have arisen on TikTok. V Spehar is an independent journalist and podcast host who has amassed over 3 million followers under the handle @UnderTheDeskNews, reporting on breaking world events in videos taken from beneath a desk. (The Post has contracted Spehar to contribute to its TikTok account.)

Bianca Graulau, an independent journalist from Puerto Rico, has amassed a large audience by covering news affecting that U.S. territory. King Asante, a Gen Z news content creator with 1.5 million TikTok followers, recently expanded by launching a show on Snapchat and posting videos covering breaking news and pop culture on Instagram and YouTube Shorts.

Cleo Abram, a science and technology journalist who worked as a producer on Vox’s series Explained, left the organization in 2021 to be a full-time creator. She now has over 1.1 million followers on TikTok, over a million subscribers on YouTube, and a dedicated fandom who look to her for news on the latest advances in science and technology.

Meredith Lynch, a TikTok creator in Los Angeles who posts investigative videos on topics ranging from pop culture to the private equity industry, said TikTokers not only hop on breaking news, but often surface scoops before traditional outlets.

“The internet drives news cycles,” she said. “It moves quickly, faster than traditional news.”

News content creators can have difficult relationships with the platforms on which their businesses depend. Shortly after Meta launched its Twitter clone Threads, head of Instagram Adam Mosseri posted on the platform that he didn’t intend it to be a place for news and journalism. TikTok doesn’t have a news partnerships liaison or anyone dedicated to helping journalists use the platform.

Snapchat initially cut deals with big news publishers when it launched its “Discover” program, allowing organizations to create unique shows. But it eventually tapered off those partnerships and has recently focused more on influencer-driven content, such as YouTube celebrity David Dobrik documenting his daily life.

YouTube has bucked this trend. This spring, the platform organized an incubator program for news content creators in the United States, Canada and Australia. The 16-week online workshop offered independent journalists tips on entrepreneurship and strategy for features like YouTube Shorts and other YouTube best practices.

“Another part of it was the networking with each other,” said Ant McCormack, co-founder of Changer Studios, which organizes courses to help YouTubers grow. “They can learn a lot from each other.”

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News industry experts are watching the shifting media landscape with a mix of skepticism and curiosity. Bill Grueskin, a professor at Columbia Journalism School, called the rise of news influencers “the logical conclusion of the atomization of news media and an extension of trends that have been happening for quite a while.”

“I hate to say it,” Grueskin added, but it also marks “the diminishing importance of a lot of traditional media in the eyes of the under 35 demographic.”

Grueskin said he worries about the loss of original reporting as most news content creators simply aggregate or comment on news from traditional sources. “I’m not trying to say that giving opinions about something isn’t important, but ultimately it relies on the quality of the underlying information, which is done through actual journalism,” he said.

However, the primary source of much of that journalism — legacy media institutions — is viewed with growing distrust, especially among young people, said Edward Wasserman, a professor of journalism and former dean of the Graduate School of Journalism at the University of California at Berkeley. National news publications that rely on access to people in power or serve primarily wealthy audiences deliver coverage that often feels out of touch with average working people, he said.

“There is a sense of a self-serving, self-indulgent elite that’s running things to benefit themselves,” Wasserman said. “For all its claims about independence and bringing a critical gaze to policy, there are vast areas where the press is in lockstep with the people who own and run the country.”

Newspapers covering local news garnered a higher level of trust, he said, but many of those outlets are now gone, leaving national outlets to shape the public’s perception. Those outlets have not elevated issues many young people care about, such as climate change, he said.

“The media is not holding [political leaders’] feet to the fire, they’re not going to the White House and saying when are you guys going to stand up and do something [about climate change], and what kind of sacrifices are in order?” Wasserman said. “That kind of leadership is something that the press should be clamoring for.”

This role is increasingly being filled by content creators, many of whom reject the neutrality of traditional journalism in favor of reporting that takes a stand. Elise Joshi, 21, is a member of Gen-Z for Change, a political collective of young activists with large social media followings. In August, Joshi interrupted White House press secretary Karine Jean-Pierreat an event on voter engagement to ask questions about the administration’s decisions to greenlight oil-drilling projects.

After Joshi posted a video of the interaction to TikTok, where she has more than 150,000 followers, people applauded her for asking questions they felt the rest of the news media had ignored.

Whatever happens to famous media brands, Wasserman said, such moments prove that news reporting will survive.

“For all of what we’re seeing which looks like a repudiation of journalism,” he said, “there are a lot of people who want to do it.”

About this story

Reporting by Taylor Lorenz. Illustration credits: Evelyn Freja for The Washington Post; Matt Winkelmeyer/Getty Images; iStock.

Design and development by Emma Kumer. Design editing by Chloe Meister. Photo editing and research by Monique Woo.

Editing by Mark Seibel, Lori Montgomery and Wendy Galietta. Additional editing by Feroze Dhanoa and Wayne Lockwood. Additional support by Megan Bridgman, Maite Fernandez, Kyley Schultz, Brandon Carter and Jordan Melendrez.

 

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Sutherland House Experts Book Publishing Launches To Empower Quiet Experts

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Sutherland House Experts is Empowering Quiet Experts through
Compelling Nonfiction in a Changing Ideas Landscape

TORONTO, ON — Almost one year after its launch, Sutherland House Experts is reshaping the publishing industry with its innovative co-publishing model for “quiet experts.” This approach, where expert authors share both costs and profits with the publisher, is bridging the gap between expertise and public discourse. Helping to drive this transformation is Neil Seeman, a renowned author, educator, and entrepreneur.

“The book publishing world is evolving rapidly,” publisher Neil Seeman explains. “There’s a growing hunger for expert voices in public dialogue, but traditional channels often fall short. Sutherland House Experts provides a platform for ‘quiet experts’ to share their knowledge with the broader book-reading audience.”

The company’s roster boasts respected thought leaders whose books are already gaining major traction:

• V. Kumar Murty, a world-renowned mathematician, and past Fields Institute director, just published “The Science of Human Possibilities” under the new press. The book has been declared a 2024 “must-read” by The Next Big Ideas Club and is receiving widespread media attention across North America.

• Eldon Sprickerhoff, co-founder of cybersecurity firm eSentire, is seeing strong pre-orders for his upcoming book, “Committed: Startup Survival Tips and Uncommon Sense for First-Time Tech Founders.”

• Dr. Tony Sanfilippo, a respected cardiologist and professor of medicine at Queen’s University, is generating significant media interest with his forthcoming book, “The Doctors We Need: Imagining a New Path for Physician Recruitment, Training, and Support.”

Seeman, whose recent and acclaimed book, “Accelerated Minds,” explores the entrepreneurial mindset, brings a unique perspective to publishing. His experience as a Senior Fellow at the University of Toronto’s Institute of Health Policy, Management and Evaluation, and academic affiliations with The Fields Institute and Massey College, give him deep insight into the challenges faced by people he calls “quiet experts.”

“Our goal is to empower quiet, expert authors to become entrepreneurs of actionable ideas the world needs to hear,” Seeman states. “We are blending scholarly insight with market savvy to create accessible, impactful narratives for a global readership. Quiet experts are people with decades of experience in one or more fields who seek to translate their insights into compelling non-fiction for the world,” says Seeman.

This fall, Seeman is taking his insights to the classroom. He will teach the new course, “The Writer as Entrepreneur,” at the University of Toronto, offering aspiring authors practical tools to navigate the evolving book publishing landscape. To enroll in this new weekly night course starting Tuesday, October 1st, visit:
https://learn.utoronto.ca/programs-courses/courses/4121-writer-entrepreneur

“The entrepreneurial ideas industry is changing rapidly,” Seeman notes. “Authors need new skills to thrive in this dynamic environment. My course and our publishing model provide those tools.”

About Neil Seeman:
Neil Seeman is co-founder and publisher of Sutherland House Experts, an author, educator, entrepreneur, and mental health advocate. He holds appointments at the University of Toronto, The Fields Institute, and Massey College. His work spans entrepreneurship, public health, and innovative publishing models.

Follow Neil Seeman:
https://www.neilseeman.com/
https://www.linkedin.com/in/seeman/

Follow Sutherland House Experts:

https://sutherlandhouseexperts.com/
https://www.instagram.com/sutherlandhouseexperts/

Media Inquiries:
Sasha Stoltz | Sasha@sashastoltzpublicity.com | 416.579.4804
https://www.sashastoltzpublicity.com

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What to stream this weekend: ‘Civil War,’ Snow Patrol, ‘How to Die Alone,’ ‘Tulsa King’ and ‘Uglies’

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Hallmark launching a streaming service with two new original series, and Bill Skarsgård out for revenge in “Boy Kills World” are some of the new television, films, music and games headed to a device near you.

Also among the streaming offerings worth your time as selected by The Associated Press’ entertainment journalists: Alex Garland’s “Civil War” starring Kirsten Dunst, Natasha Rothwell’s heartfelt comedy for Hulu called “How to Die Alone” and Sylvester Stallone’s second season of “Tulsa King” debuts.

NEW MOVIES TO STREAM SEPT. 9-15

Alex Garland’s “Civil War” is finally making its debut on MAX on Friday. The film stars Kirsten Dunst as a veteran photojournalist covering a violent war that’s divided America; She reluctantly allows an aspiring photographer, played by Cailee Spaeny, to tag along as she, an editor (Stephen McKinley Henderson) and a reporter (Wagner Moura) make the dangerous journey to Washington, D.C., to interview the president (Nick Offerman), a blustery, rising despot who has given himself a third term, taken to attacking his citizens and shut himself off from the press. In my review, I called it a bellowing and haunting experience; Smart and thought-provoking with great performances. It’s well worth a watch.

— Joey King stars in Netflix’s adaptation of Scott Westerfeld’s “Uglies,” about a future society in which everyone is required to have beautifying cosmetic surgery at age 16. Streaming on Friday, McG directed the film, in which King’s character inadvertently finds herself in the midst of an uprising against the status quo. “Outer Banks” star Chase Stokes plays King’s best friend.

— Bill Skarsgård is out for revenge against the woman (Famke Janssen) who killed his family in “Boy Kills World,” coming to Hulu on Friday. Moritz Mohr directed the ultra-violent film, of which Variety critic Owen Gleiberman wrote: “It’s a depraved vision, yet I got caught up in its kick-ass revenge-horror pizzazz, its disreputable commitment to what it was doing.”

AP Film Writer Lindsey Bahr

NEW MUSIC TO STREAM SEPT. 9-15

— The year was 2006. Snow Patrol, the Northern Irish-Scottish alternative rock band, released an album, “Eyes Open,” producing the biggest hit of their career: “Chasing Cars.” A lot has happened in the time since — three, soon to be four quality full-length albums, to be exact. On Friday, the band will release “The Forest Is the Path,” their first new album in seven years. Anthemic pop-rock is the name of the game across songs of love and loss, like “All,”“The Beginning” and “This Is the Sound Of Your Voice.”

— For fans of raucous guitar music, Jordan Peele’s 2022 sci-fi thriller, “NOPE,” provided a surprising, if tiny, thrill. One of the leads, Emerald “Em” Haywood portrayed by Keke Palmer, rocks a Jesus Lizard shirt. (Also featured through the film: Rage Against the Machine, Wipers, Mr Bungle, Butthole Surfers and Earth band shirts.) The Austin noise rock band are a less than obvious pick, having been signed to the legendary Touch and Go Records and having stopped releasing new albums in 1998. That changes on Friday the 13th, when “Rack” arrives. And for those curious: The Jesus Lizard’s intensity never went away.

AP Music Writer Maria Sherman

NEW SHOWS TO STREAM SEPT. 9-15

— Hallmark launched a streaming service called Hallmark+ on Tuesday with two new original series, the scripted drama “The Chicken Sisters” and unscripted series “Celebrations with Lacey Chabert.” If you’re a Hallmark holiday movies fan, you know Chabert. She’s starred in more than 30 of their films and many are holiday themed. Off camera, Chabert has a passion for throwing parties and entertaining. In “Celebrations,” deserving people are surprised with a bash in their honor — planned with Chabert’s help. “The Chicken Sisters” stars Schuyler Fisk, Wendie Malick and Lea Thompson in a show about employees at rival chicken restaurants in a small town. The eight-episode series is based on a novel of the same name.

Natasha Rothwell of “Insecure” and “The White Lotus” fame created and stars in a new heartfelt comedy for Hulu called “How to Die Alone.” She plays Mel, a broke, go-along-to-get-along, single, airport employee who, after a near-death experience, makes the conscious decision to take risks and pursue her dreams. Rothwell has been working on the series for the past eight years and described it to The AP as “the most vulnerable piece of art I’ve ever put into the world.” Like Mel, Rothwell had to learn to bet on herself to make the show she wanted to make. “In the Venn diagram of me and Mel, there’s significant overlap,” said Rothwell. It premieres Friday on Hulu.

— Shailene Woodley, DeWanda Wise and Betty Gilpin star in a new drama for Starz called “Three Women,” about entrepreneur Sloane, homemaker Lina and student Maggie who are each stepping into their power and making life-changing decisions. They’re interviewed by a writer named Gia (Woodley.) The series is based on a 2019 best-selling book of the same name by Lisa Taddeo. “Three Women” premieres Friday on Starz.

— Sylvester Stallone’s second season of “Tulsa King” debuts Sunday on Paramount+. Stallone plays Dwight Manfredi, a mafia boss who was recently released from prison after serving 25 years. He’s sent to Tulsa to set up a new crime syndicate. The series is created by Taylor Sheridan of “Yellowstone” fame.

Alicia Rancilio

NEW VIDEO GAMES TO PLAY

— One thing about the title of Focus Entertainment’s Warhammer 40,000: Space Marine 2 — you know exactly what you’re in for. You are Demetrian Titus, a genetically enhanced brute sent into battle against the Tyranids, an insectoid species with an insatiable craving for human flesh. You have a rocket-powered suit of armor and an arsenal of ridiculous weapons like the “Chainsword,” the “Thunderhammer” and the “Melta Rifle,” so what could go wrong? Besides the squishy single-player mode, there are cooperative missions and six-vs.-six free-for-alls. You can suit up now on PlayStation 5, Xbox X/S or PC.

— Likewise, Wild Bastards isn’t exactly the kind of title that’s going to attract fans of, say, Animal Crossing. It’s another sci-fi shooter, but the protagonists are a gang of 13 varmints — aliens and androids included — who are on the run from the law. Each outlaw has a distinctive set of weapons and special powers: Sarge, for example, is a robot with horse genes, while Billy the Squid is … well, you get the idea. Australian studio Blue Manchu developed the 2019 cult hit Void Bastards, and this Wild-West-in-space spinoff has the same snarky humor and vibrant, neon-drenched cartoon look. Saddle up on PlayStation 5, Xbox X/S, Nintendo Switch or PC.

Lou Kesten

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Trump could cash out his DJT stock within weeks. Here’s what happens if he sells

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Former President Donald Trump is on the brink of a significant financial decision that could have far-reaching implications for both his personal wealth and the future of his fledgling social media company, Trump Media & Technology Group (TMTG). As the lockup period on his shares in TMTG, which owns Truth Social, nears its end, Trump could soon be free to sell his substantial stake in the company. However, the potential payday, which makes up a large portion of his net worth, comes with considerable risks for Trump and his supporters.

Trump’s stake in TMTG comprises nearly 59% of the company, amounting to 114,750,000 shares. As of now, this holding is valued at approximately $2.6 billion. These shares are currently under a lockup agreement, a common feature of initial public offerings (IPOs), designed to prevent company insiders from immediately selling their shares and potentially destabilizing the stock. The lockup, which began after TMTG’s merger with a special purpose acquisition company (SPAC), is set to expire on September 25, though it could end earlier if certain conditions are met.

Should Trump decide to sell his shares after the lockup expires, the market could respond in unpredictable ways. The sale of a substantial number of shares by a major stakeholder like Trump could flood the market, potentially driving down the stock price. Daniel Bradley, a finance professor at the University of South Florida, suggests that the market might react negatively to such a large sale, particularly if there aren’t enough buyers to absorb the supply. This could lead to a sharp decline in the stock’s value, impacting both Trump’s personal wealth and the company’s market standing.

Moreover, Trump’s involvement in Truth Social has been a key driver of investor interest. The platform, marketed as a free speech alternative to mainstream social media, has attracted a loyal user base largely due to Trump’s presence. If Trump were to sell his stake, it might signal a lack of confidence in the company, potentially shaking investor confidence and further depressing the stock price.

Trump’s decision is also influenced by his ongoing legal battles, which have already cost him over $100 million in legal fees. Selling his shares could provide a significant financial boost, helping him cover these mounting expenses. However, this move could also have political ramifications, especially as he continues his bid for the Republican nomination in the 2024 presidential race.

Trump Media’s success is closely tied to Trump’s political fortunes. The company’s stock has shown volatility in response to developments in the presidential race, with Trump’s chances of winning having a direct impact on the stock’s value. If Trump sells his stake, it could be interpreted as a lack of confidence in his own political future, potentially undermining both his campaign and the company’s prospects.

Truth Social, the flagship product of TMTG, has faced challenges in generating traffic and advertising revenue, especially compared to established social media giants like X (formerly Twitter) and Facebook. Despite this, the company’s valuation has remained high, fueled by investor speculation on Trump’s political future. If Trump remains in the race and manages to secure the presidency, the value of his shares could increase. Conversely, any missteps on the campaign trail could have the opposite effect, further destabilizing the stock.

As the lockup period comes to an end, Trump faces a critical decision that could shape the future of both his personal finances and Truth Social. Whether he chooses to hold onto his shares or cash out, the outcome will likely have significant consequences for the company, its investors, and Trump’s political aspirations.

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