- Trump Media was worth a little under $7 billion as of April 3.
- The organization’s cofounders were limited to cheap flights and hotels.
- The cofounders’ contract stipulated economy flights and lodging under $150 per night, per a lawsuit.
Former President Donald Trump’s media organization may be a multibillion-dollar entity on paper, but that appears to be no indication of the company’s performance — or the kind of executive lifestyle the cofounders were granted when starting the company.
According to their contract, Trump Media & Technology Group’s cofounders, Andrew Litinsky and Wes Moss, were limited to cheap flights and hotels as they were entrusted to take Trump’s media empire public.
Litinsky and Moss, along with their company United Atlantic Ventures, were sued in late March by the former president. The lawsuit accuses the cofounders of trying to “thwart” an opportunity for the company to go public.
Both Litinsky and Moss were former contestants of Trump’s reality show, “The Apprentice.” As cofounders, the lawsuit stated, Litinsky and Moss were tasked to set up Trump Media’s corporate governance structure, launch Trump’s social media platform Truth Social, and take Trump Media public. In exchange, the founders were promised 8.6 million shares of the company. Those shares are at the center of a separate lawsuit that was filed in February by the cofounders.
But Trump’s media company is now trying to claw back those shares from Litinsky and Moss, arguing that the cofounders failed “spectacularly at every turn.”
As part of the lawsuit, Trump’s attorneys included the “services agreement” Litinsky and Moss signed in 2021 that Trump’s lawyers now argue is void. The agreement essentially stipulates the work the co-founders will be expected to perform.
Within that agreement are “guidelines for reimbursable expenses,” and according to the copy provided in the lawsuit, Litinsky and Moss weren’t offered many amenities.
For transportation, the cofounders were limited to “economy, coach or supersave fares with applicable flight insurance.” Business class could be booked for international travel, but a “21-day advance purchase is expected, when possible,” the contract stated.
The cofounders were also encouraged to keep lodging expenses to a minimum and “to limit expenditures if possible, where under $150.00 per night is typically reasonable for most cities,” the agreement said.
An attorney for Litinsky and Moss did not respond to a request for comment.
It’s unclear if the contract agreement reflects the C-suite lifestyle Litinsky and Moss lived as they tried to establish Trump’s media organization.
The expenses outlined in the contract are a far cry from the typical lavishness executives, let alone social media cofounders, are afforded.
Trump Media’s evaluation is also not a reflection of the company’s performance. As Business Insider’s senior correspondent Emily Stewart noted, Trump Media makes close to nothing. The company’s financial statements reveal that Trump Media made $4.1 million last year and lost $58 million.
After reporting the loss, Trump Media’s stock plunged, making the former president’s net worth tumble by more than $1 billion.
A spokesperson for Trump Media declined to comment.
