Trump Media's $6 billion merger plan sparks 'conflict of interest' concerns

A $6-billion merger plan between President Donald Trump's social media company and fusion power company TAE Technologies has sparked concerns about potential conflicts of interest as TAE Technologies has recently received federal funding. Trump Media & Technology Group (TMTG), the parent company of the president's social media platform Truth Social, and fusion energy firm TAE Technologies announced Thursday that they are to merge to create a public traded fusion company. They said the merger deal is valued at more than $6 billion.

But ethics experts have raised conflict of interest concerns about the arrangement, because TAE is a recipient of government finance. In September, the U.S. Department of Energy (DOE) granted TAE Technologies $6.1 million for fusion research via the Innovation Network for Fusion Energy (INFUSE) awards.

"The media's continued attempts to fabricate conflicts of interest are irresponsible and reinforce the public's distrust in what they read. Neither the President nor his family have ever engaged, or will ever engage, in conflicts of interest," White House press secretary Karoline Leavitt told Newsweek.

A TMTG spokesperson told Newsweek: "Unsurprisingly, partisan media and their handpicked 'experts' invent baseless claims about hypothetical ethics violations instead of objectively covering a deal that could provide the solution to limitless energy."

In December 2024, before he took office, Trump transferred more than 114 million shares in TMTG to the Donald J. Trump Revocable Trust whose trustee is Donald Trump Jr, his son, according to Securities and Exchange Commission filings. This makes the president the company's largest shareholder, according to multiple media reports. One year later, the firm announced the merger with the energy company.

"This is an obvious conflict of interest," Craig Holman, a lobbyist for consumer advocacy group Public Citizen who specializes in governmental ethics told Newsweek. "Trump is likely to enrich himself even further off the government dole."

Jessica Tillipman, the associate dean for government procurement law studies at the George Washington University Law added to Newsweek: "In this instance, the appearance issues are exacerbated by the fact that the entity receives federal funding. It increases the concern that pressure could be placed on DOE officials to favor this company in a way that could benefit the family financially."

However, there is no suggestion of wrongdoing and these mergers and arrangements are legal. Tillipman said: "The president is exempt from federal conflict of interest laws, and unlike his predecessors, has never taken steps to separate himself from his business interests." But she added: "Because the presidency is a position of public trust, there is a normative expectation that the president should do so."