Newsmax’s Explosive IPO Rockets Valuation Past $20 Billion Amid Legal and Market Storms
Newsmax, the conservative outlet known as a strong competitor to Fox News, caused a stir on Wall Street with an IPO that defied expectations. By raising $75 million at $10 per share, the stock soared 735% on its first day and added another 180% gain on Tuesday, pushing its market value past $20 billion by Tuesday afternoon with shares closing at $234—a near tripling of the initial price. Frenzied trading triggered several halts, underscoring the market’s volatility and the overwhelming demand.
CEO Christopher Ruddy, a seasoned media veteran and longtime Trump confidant, emphasized that the fresh capital will fuel an rapid expansion of programming and digital presence. His 31% stake, now valued in the billions, mirrors the passion of conservatives who feel sidelined by mainstream media.
In a rapidly evolving landscape, Newsmax is thriving—it’s capitalizing on the digital shift. The network’s broad reach spans a $4.99-a-month direct-to-consumer streaming service, cable broadcasting, print publications, a news app, and various podcasts. While Nielsen data peg prime time viewership at about 305,000, far below Fox News’s numbers, the surging growth tells a compelling story.
This surge mirrors the enthusiasm of conservative investors in a polarized arena. More than just a TV channel, Newsmax has become a beacon for conservatives eager for alternatives to what they see as a biased mainstream narrative. The IPO even gained popularity through social media among supporters.
However, Newsmax’s rapid rise faces significant challenges. The network is entangled in a $1.6 billion defamation lawsuit filed by Dominion Voting Systems over its election commentary, and a $40 million settlement with Smartmatic is underway—half of which has already been paid. Recent SEC filings also spotlight weaknesses in its financial controls, urging investors to exercise caution amid the high market performance.
The financial data shows both promise and peril. Despite revenue climbing by 26% to roughly $171 million in 2024, the network recorded a net loss of $72 million. This mix of strong market enthusiasm and looming financial and regulatory challenges has industry watchers closely monitoring Newsmax’s long-term future.
Key to this meteoric rise is backing from influential investors. Endorsements from figures such as brokerage heavyweight Thomas Peterffy, along with support from Qatari royal Sheikh Sultan bin Jassim Al-Thani (15%) and Ukrainian businessman Vadim Shulman (4%), have been crucial in driving the network’s impressive market valuation ahead of many traditional media players.
Newsmax’s ascent reflects a significant change in American media, with conservative voters actively seeking alternatives to what they perceive as the establishment’s narrative. In a climate marked by political volatility, legal entanglements, and rapid industry changes, Newsmax is forging its own path.
In a nod to its roots, Ruddy recently shared a message inspired by a conversation with President Trump: "As Trump succeeds, so does Newsmax!" This rallying cry underscores Newsmax’s dual role as both a media powerhouse and a political beacon, signaling a disruption of traditional media power structures.