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Should Newsmax Pursue an IPO to Address Financial Challenges and Ensure Its Survival?

Should Newsmax Pursue an IPO to Address Financial Challenges and Ensure Its Survival?

Here’s The Scoop

As Newsmax navigates turbulent waters due to two major defamation lawsuits linked to its 2020 election coverage, the conservative cable news network is eyeing a bold move to stabilize its future: going public.

This audacious step involves raising $225 million from investors, offering 30,000 shares at $5,000 each to accredited investors, in a move reminiscent of Donald Trump’s Truth Social.

Newsmax CEO Chris Ruddy emphasized the urgency of this endeavor, especially with the 2024 election year around the corner.

“Now more than ever, especially in this election year of 2024, America needs Newsmax and you can join with us as an investor,” Ruddy stated, rallying potential investors to support the network.

The network is pulling no punches in promoting the IPO. During a recent interview with former U.S. Ambassador to Germany Ric Grenell, Newsmax host Lidia Curanaj cut the conversation short to plug the offering, telling viewers, “We want you to be a co-owner.” Promotions further extended to a sizable graphic during Trump’s speech at a TPUSA conference in Detroit, aired in full by Newsmax.

The stakes are high for Newsmax, as it faces substantial lawsuits from election technology companies Smartmatic and Dominion, accusing the network of promoting false claims about the 2020 presidential election. Dominion is seeking damages upwards of $1.6 billion. In a disclosure to prospective investors, Newsmax revealed its financial struggles, including losses of $20 million in 2022 and $41.8 million in 2023.

Despite these challenges, a Newsmax spokesperson asserted that the company is currently profitable and expects to end the year on a positive note.

Wealth manager Ted Jenkin noted, “All businesses need capital to survive,” adding that the IPO could provide the necessary financial lifeline for Newsmax to address its legal challenges and expand its reach within its target demographics.

If successful, this public offering could help Newsmax weather its legal storms and solidify its position in the conservative media landscape. The network has become a significant platform for Trump supporters and continues to play a vital role in conservative media. However, the road ahead is fraught with uncertainty, and the network’s ability to secure sufficient funds and navigate its legal battles will ultimately determine its future.

What do you think? Let us know by participating in our poll, or join the discussion in the comment section below!


1 Comment

1 Comment

  1. Bob

    June 30, 2024 at 10:02 am

    We should support any Conservative effort to combat the Left. They Left Wing Media is paid to lie. We need to elect President Trump and win the House and Senate. Then we turn this battleship around.

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