What is Newsmax? Everything You Need To Know

Last year, Newsmax lost $55 million in the first half. However, this week saw a sharp increase in its stock as the company’s shares were first offered for sale on the open market.

Since its shares began trading on the public markets on Monday, Newsmax, the right-wing cable news channel, has been on a wild ride.

This week, the stock shot up to $279 on the New York Stock Exchange, briefly valuing the company at over $20 billion. The stock plummeted to $52 on Wednesday, and by the time the market closed, its market value was approximately $5 billion. For a brief period, it outperformed U.S. Steel, which is worth about $9.5 billion.

Founded over 20 years ago as a longshot rival to more established cable news channels like Fox News, CNN, and MSNBC, Newsmax’s spectacular stock market launch was just the most recent unexpected turn of events.

In an interview on Wednesday, Newsmax founder Chris Ruddy stated that he wasn’t concerned about the company’s fluctuating stock price.

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Mr. Ruddy stated, “I have to do the same thing: Continue building Newsmax and to do my job, regardless of whether the stock price goes to $1,000 or to $10.”

What you should know is as follows:

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What is Newsmax?

The idea for Newsmax came from Mr. Ruddy, a former reporter for the New York Post who has connections to the South Florida social circle of President Trump. Mr. Ruddy, who is 60 years old, started Newsmax in 1998 and has grown it into a beloved conservative media outlet with Newsmax+, a digital membership service, a magazine, and a cable channel. Newsmax, like many other conservative media companies, has a “nutraceuticals business” that offers health supplements.

Anchors like right-wing radio personality Michael Savage and ex-Fox News host Greg Kelly ensure consistently conservative programming on the company’s cable channel. Verizon, Dish Network, Comcast, DirecTV, and Charter are among the many major cable and satellite providers that carry the channel.

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Why is its Stock Soaring?

Investor interest in Mr. Trump’s linked enterprises, like the Trump Media & Technology Group—parent of his Truth Social platform—has helped the channel’s stock market debut on Monday.

Newsmax has failed to generate any revenue in the time leading up to its initial public offering (IPO), despite its inflated value. Investors were warned that Newsmax’s capacity to turn a profit could be impacted by the challenges confronting the TV business in the first half of 2024, as the company earned $79.8 million in revenue but lost $55.5 million.

Mr. Ruddy, along with his affiliates, controls 81.4% of the voting power in the company, thus the stock spike is a boon for him.

When compared to other cable channels, how does Newsmax fare?

In comparison to Fox News, the most popular right-wing cable station, Newsmax has a very small audience. Nielsen found that in the first three months of 2025, there were an average of 305,000 prime-time viewers for Newsmax programs, which is a far cry from the three million who tuned in to Fox News during the same time.

According to S&P Global Market Intelligence, cable and satellite companies do not pay a premium price to distribute Newsmax programs, unlike other channels. While this is great for advertising revenue at Newsmax, it does put the network at a financial disadvantage compared to its rivals.

On the other hand, according to Mr. Ruddy’s Wednesday statement, Newsmax has been gradually raising the prices it charges cable and satellite providers. He also mentioned that during the renegotiations, the rates per subscriber are expected to rise or even triple.

“At the moment, our revenue is significantly lower than CNN’s, but we are very optimistic about our future,” Mr. Ruddy stated.

Where does Newsmax Stand in terms of Legal Issues?

After the 2020 presidential election, voting system firms Dominion and Smartmatic sued Newsmax and other conservative cable networks, claiming that the networks promoted unfounded conspiracy theories regarding their equipment.

Last year, Newsmax and Smartmatic reached a $40 million settlement, which the company stated in its financial filing will be paid in full by June. An option for Smartmatic to purchase a block of Newsmax preferred stock for $5,000 per share was also included in the settlement.

However, a trial is scheduled to commence later this year in the ongoing litigation with Dominion. Compensation in the amount of $1.6 billion is being sought by Dominion. The electoral technology company’s lawsuit may have “a material adverse effect on Newsmax’s financial position,” according to a financial filing by Newsmax.

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