In a significant blow to Trump Media & Technology Group (DJT), the company's stock experienced a sharp decline of over 10% on Tuesday following the announcement of a forthcoming live TV streaming platform. The parent company of Donald Trump's social media platform, Truth Social, intends to introduce the live streaming service through the Truth Social app, accessible on phones, tablets, and televisions.

According to a press release, the streaming content on Truth Social's platform will primarily revolve around live TV channels, including news networks, religious channels, and family-friendly content such as films and documentaries. It aims to offer a space for content that has been subjected to cancellation or suppression on other platforms.

Trump Media, after merging with Digital World Acquisition Corp., went public on the Nasdaq last month, gaining approval from shareholders. However, shares have since witnessed a significant decline of over 60% since the end of March. The recent filing of additional shares, amounting to 21 million, further contributed to the stock's downward spiral on Monday.

With his approximate 60% stake in Truth Social, former President Donald Trump's personal wealth is closely tied to the performance of Trump Media's stock. Currently, at a trading level of approximately $23.40 per share, Trump's stake is valued at around $1.9 billion, resulting in a decline from its original valuation of over $4.5 billion following the company's public debut.

The inception of Truth Social came after Trump faced suspension from major social media platforms such as Facebook and Twitter, later renamed as X, due to his alleged role in the January 6 Capitol riots in 2021. Although he has been reinstated on these platforms, Trump proceeded with the creation of his alternative social media platform.

An updated regulatory filing revealed that Trump Media reported sales of just over $4 million for the year ending December 31, with net losses amounting to nearly $60 million. The company anticipates continued losses in the face of mounting profitability challenges.

Furthermore, President Trump's looming $454 million fraud penalty and a campaign fundraising shortfall ahead of a potential 2024 election rematch against President Biden poses additional challenges for the former president. Recently, Trump posted a $175 million bond in the fraud case, temporarily pausing the final payment while he appeals the verdict.

The latest news of the live TV streaming platform launch puts Trump Media's future performance under scrutiny as it aims to carve out its niche in the rapidly evolving media landscape. Only time will tell if this new venture will help the company regain its former value and profitability.