Only two weeks earlier, Newsmax—the right-wing cable news upstart with an equally-apoplectic conservative worldview—had taken the NYSE by storm. It was a historic first day on Monday. The firm, officially in name only called “NMAX,” started out with trading at $14 per share. This came only a week after it priced its shares at $10 a piece. That would be a 40% gain from its debut trading day. That’s a major accomplishment for a pure-play TV network IPO in the United States. The network raised $75 million through the sale of 7.5 million class B common shares, highlighting investor interest in its growing viewership and strategic positioning in the cable news landscape.
Newsmax’s brilliant strategy to capture the remaining “center right market.” Its founder and CEO, Christopher Ruddy, has demonstrated this fact with their bold plans. The channel has been quite opportunistic with the resulting political climate. It had a pretty dramatic spike in ratings, particularly through the election of President Donald Trump and other national Republicans. For all of Newsmax’s rapidly increasing popularity, it remains a distant third—still far behind the top-rated Fox News.
The channel ranks in the top 20 among cable networks for average viewership in both primetime and daytime, securing its place as the “number four cable news channel in the United States, right behind CNN.” Newsmax’s ratings have more or less locked in this fourth place finish, behind Fox News, MSNBC, and Fox.
“I think there was a demand for more competition against Fox.” – Christopher Ruddy
Newsmax’s move to go public follows its own successful settlement of a fight with DirecTV earlier this year. Newsmax lobbied hard for new licensing fees from DirecTV, leading to the dispute. As a direct consequence, the channel was flung from the pay-TV provider on a momentary basis. That problem has been fixed since then, and Newsmax is now available through the vast majority of major pay-TV distributors.
The company has been locked in battles over licensing fees with cable television providers. This strategic move will ensure its financial viability and allow it to grow its impact even further. This new strategy fits Newsmax’s ongoing commitment to producing right-of-center content through the lens of independent, top-tier news.
“We believe we’re conservative with an independent news mission, and ask tough questions of the Trump administration.” – Christopher Ruddy
Newsmax CEO Christopher Ruddy shared his enthusiasm for Newsmax’s accomplishments and future trajectory in changing the media landscape. He sees the company’s growth as a testament to its ability to meet audience demands for diverse viewpoints within conservative media.
“I think it’s a pretty big achievement for a 10-year-old, new cable company.” – Christopher Ruddy