Investing.com -- Trump Media and Technology and TAE Technologies announced on Wednesday they have abandoned plans to spin off Truth Social and certain other media assets into a separate publicly listed company.

The companies did not disclose reasons for canceling the proposed spinoff of the conservative-focused social media platform. Shares of Trump Media and Technology were marginally down on Wednesday. The stock has declined more than 38% in 2026.

Trump Media and Technology, founded by U.S. President Donald Trump, said it remains committed to completing its merger with TAE Technologies. The company expects to close the transaction in the fourth quarter of this year or earlier.

In December, the two companies agreed to an all-stock merger valued at more than $6 billion. The deal represents a shift toward fusion energy and aims to create a publicly traded company focused on developing utility-scale power plants to address growing electricity demand, including from artificial intelligence data centers.

TAE Technologies, based in California, develops nuclear fusion technology and has secured more than $1 billion from investors, including Alphabet's Google and Chevron.

Trump Media and Technology has encountered difficulties expanding its media business due to competition from larger social networks and inconsistent user growth.

Earlier this year, the company named Kevin McGurn as interim chief executive officer. McGurn has served as an adviser to Trump Media since December 2024.