Feb 27 (Reuters) - Trump Media & Technology Group ( DJT )

, founded by U.S. President Donald Trump, is considering

spinning off its social media platform Truth Social into a

publicly traded company.

TMTG is in discussions with TAE Technologies and Texas

Ventures Acquisition III about the proposed transaction, the

company said on Friday.

Under the proposal, shares in the spun-off company will be

distributed to eligible TMTG shareholders, after which the new

entity will merge with a special purpose acquisition company.

Such a transaction would separate TMTG's social media and

digital media assets from its recently announced fusion energy

venture, effectively splitting the company into two publicly

traded businesses with distinct strategies.

Founded by President Donald Trump and known for its Truth

Social platform aimed at conservative audiences, TMTG has faced

challenges scaling its media business amid competition from

larger social networks and uneven user growth.

It is now seeking to reposition itself beyond its core Truth

Social platform and tap investor interest in emerging energy

technologies.

TMTG said no definitive agreement has been reached on the

spin-off and discussions are ongoing.

The company's shares were down more than 3% in afternoon

trading.

In December, TMTG agreed to merge with TAE in an all-stock deal

valued at more than $6 billion, marking a pivot toward fusion

energy and the creation of a publicly traded company focused on

developing utility-scale power plants to help meet rising

electricity demand, including from AI data centers.

TAE Technologies is a California-based private company

developing advanced nuclear fusion technology that has raised

more than $1 billion from investors including Alphabet's

Google and Chevron ( CVX ).

The startup focuses on a form of fusion designed to produce

electricity without releasing large amounts of neutron

radiation, reducing radioactive waste.