Newsmax Goes Public During Financial & Legal Struggles

The right-wing cable channel Newsmax lost $42 million last year and plans to go public in an attempt to gain financial support for the network amidst legal trouble.

The conservative cable news network announced a bid to raise $225 million from investors from an IPO that will take place either later this year or early next year.

Their plan includes selling 30,000 shares to investors priced at $5,000 each. This format mimics former President Donald Trump’s Truth Social platform, which experienced financial losses but was significantly boosted by investors who wanted to support the former president.

The company is also involved in two significant defamation cases from Smartmatic and Dominion, as both companies are alleging that Newsmax pushed the idea that the election was stolen from Trump in 2020 to boost viewership. Each case is expected to go to trial this year. Fox News settled  $787.5 million with Dominion over similar charges.

In a 225-page disclosure to prospective investors, the network said they were involved in litigation dealing with free speech and defamation. The disclosure reported that the network was “currently involved in significant litigation, including claims relating to alleged libel or defamation and personal injury and property damage, free speech, and regulatory requirements.”

The network has begun promoting the IPO publicly. In a press release, Newsmax CEO Chris Ruddy invited supporters to invest in the network.

“Now more than ever, especially in this election year of 2024, America needs Newsmax and you can join with us as an investor,” Ruddy said. 

Additionally, they have promoted the IPO on air. Host Lidia Curanaj ended an interview with former U.S. Ambassador Ric Grenell to promote the IPO.

“We want you to be a co-owner,” Curanaj told viewers.

Additionally, the IPO was promoted on a large screen during a Trump speech at a Turning Point USA event in Detroit.

Article by Hannah Molayal