Conservative television network Newsmax has been all over the news recently with its shares going parabolic. This increase is a testament to its close ties with key conservative leaders and efforts. Newsmax began life as an internet-only operation back in 1998. Since then, it’s grown into perhaps the most important communications player of our time, particularly after it won the favor of former President Donald Trump while he was in office.
Christopher Ruddy, the founder and chief executive of Newsmax, has been the guiding force behind the company’s explosive expansion and aggressive strategy. Ruddy’s impressive net worth is currently over $9 billion, according to the Bloomberg Billionaires Index. Today he has uniquely succeeded in establishing Newsmax as the most consequential player on the righty media landscape. The firm just listed its shares on stock exchange. It allied with other conservative organizations, like Canada-based video platform Rumble Inc and Trump Media & Technology Group.
The recent spike in Newsmax stock has been particularly sensational. The shares were priced at $10 (£7.75) per share. By the end of Tuesday’s trading session, they rocketed all the way up to $233. Many factors are behind this historic high uptick. Let’s parse out why, first and foremost by considering the network’s formidable connection to Trump and the larger conservative movement. Trump’s endorsement during his first term significantly boosted Newsmax’s ratings, especially when he expressed dissatisfaction with Fox News, a competitor in the conservative media space.
Since then, Newsmax’s standing as a pro-Trump network has turned into the heart of its brand. Maybe that’s why the usually friendly fire approach toward Trump has reaped dividends. The network did a great job of bringing in people looking for another kind of news that caters to their right-wing worldview. Then in 2020, the network’s ratings exploded. This wave occurred principalmente because Trump backed it when he called it a reliable outlet for conservative news.
The network’s road hasn’t been free of scandal. Most famously, Newsmax recently agreed to pay $40 million to settle claims of defamation made by the voting machine corporation Smartmatic. The network then continued to pump out defamatory claims against Smartmatic. They alleged the company helped rig elections to ensure President Joe Biden’s victory in the 2020 elections. This legal settlement highlights the challenges that conservative media outlets face regarding accuracy and accountability.