Newsmax, the conservative cable news network that has gained traction in recent years, officially launched its initial public offering (IPO) on the New York Stock Exchange (NYSE) on July 14, 2024. This significant step comes as the network’s audience continues to grow, particularly following the election of former President Donald Trump.

IPO Details and Market Performance

Trading under the ticker symbol “NMAX,” Newsmax started at an opening price of $14 per share after pricing its initial shares at $10. This marked a remarkable opening day where its stock surged over 700%, culminating in a closing price of $83.51.

In September 2023, the network had revealed its intentions for an IPO set for early 2025. Leading up to its public debut, Newsmax successfully raised $75 million, selling 7.5 million shares of its Class B common stock.

The Changing Landscape of Cable News

Newsmax’s IPO is a notable event given the scarcity of TV network IPOs in recent decades, particularly at a time when traditional cable television is experiencing decline as viewers shift to streaming services. Despite the challenges faced by cable networks, Newsmax has found an audience in the competitive news market, particularly appealing to conservatives.

Competitor Landscape

Christopher Ruddy, Newsmax’s founder and CEO, articulated the network’s value proposition during an appearance on CNBC’s “Squawk Box.” He stated that Fox News lacks competition in the center-right segment of the market. Ruddy expressed, “I think there was a demand for more competition against Fox,” highlighting Newsmax’s emergence as a significant player in the cable news arena.

Launched in 1998 originally as a digital platform, Newsmax transitioned into a cable network in 2014. Over recent years, it has grown its audience significantly and is now available on most major pay-TV platforms.

Current Audience Metrics

According to Nielsen, Newsmax has risen to become the fourth most-viewed cable news channel in the U.S., positioned right behind established networks like CNN, MSNBC, and Fox News. Yet, it still trails in viewership numbers; from late December to March, Newsmax reported an average of 309,000 prime-time viewers compared to Fox News’ nearly 3.1 million during the same timeframe.

Despite these disparities, Ruddy expressed pride in their achievement, asserting, “I think it’s a pretty big achievement for a 10-year-old, new cable company.”

Business Strategy and Revenue Sources

As Newsmax’s popularity has surged, it has begun negotiating licensing fees with cable providers, a shift from its earlier dependence on advertising revenues. In 2023, it settled a dispute with DirecTV, which briefly removed it from their service, in further pursuit of these fees.

Future Aspirations and Political Standing

As the company made its public market debut, Ruddy addressed Newsmax’s political positioning. He remarked, “We believe we’re conservative with an independent news mission, and ask tough questions of the Trump administration.” This statement reflects the network’s complex relationship with its audience and its approach to political coverage.

Following the IPO, Ruddy mentioned a conversation with Donald Trump where they discussed the implications of the IPO, encapsulated in his phrase: “A rising Trump lifts all boats!”