As Newsmax hurtles towards two major defamation trials over its coverage of the last presidential election, the conservative cable news network is pinning its hopes of survival on an audacious plan to go public.
Newsmax announced a bid last week to raise $225 million from investors in anticipation of an IPO later this year or early next. It’s offering 30,000 shares at $5,000 each to accredited investors in an apparent attempt to mimic the success of Donald Trump’s Truth Social, a media company that, despite steep financial losses, has boomed thanks in no small part to retail investors looking to give the former president a boost.
“Now more than ever, especially in this election year of 2024, America needs Newsmax and you can join with us as an investor,” Newsmax CEO Chris Ruddy said in a press release.
Newsmax is promoting the IPO aggressively. On Saturday, Newsmax host Lidia Curanaj abruptly ended an interview with former U.S. Ambassador to Germany Ric Grenell in order to plug the public offering.
In a 225-page disclosure to potential investors, Newsmax stated the company is “currently involved in significant litigation, including claims relating to alleged libel or defamation and personal injury and property damage, free speech, and regulatory requirements.”
On page 72 of the document, Newsmax disclosed that it is being sued by Dominion, which is seeking upwards of $1.6 billion in damages, as well as Smartmatic. Newsmax also revealed in the document that in 2023, the company settled with an unidentified commercial party for $41.3 million, to which it has paid roughly $2 million so far.
The disclosure said the network’s revenue last year was $135.3 million. The company hasn’t made a profit since 2021, having lost $20 million in 2022 and $41.8 million in 2023.
