- Newsmax went public on the NYSE under “NMAX,” opening at $14 per share after pricing at $10, soaring over 500% by midday Monday, following a $75 million IPO of 7.5 million Class B shares, driven by audience growth post-Trump election.
- As the No. 4 U.S. cable news channel behind Fox News, CNN, and MSNBC, and ranking in the top 20 for viewership, Newsmax aims to compete in the “center right market,” a niche CEO Christopher Ruddy says lacks competition.
- The rare pure-play TV network IPO, a first in decades per Dealogic, capitalizes on news and sports’ dominance in cable TV, with Ruddy citing a Trump call and the phrase “A rising Trump lifts all boats!” to highlight political tailwinds.
Newsmax’s debut on the New York Stock Exchange under the ticker “NMAX” marks a bold step for the conservative cable news network, with shares opening at $14 on Monday after pricing at $10 and skyrocketing 525% to $62.50 by midday in volatile trading. This surge reflects a wave of investor enthusiasm tied to the network’s growing audience, fueled by the recent election of President Donald Trump and a broader right-wing political shift. Founder and CEO Christopher Ruddy, who launched Newsmax as a digital platform in 1998 before transitioning it to cable in 2014, sees this as a rare opportunity to challenge Fox News in what he calls the “center right market.” The $75 million raised through the sale of 7.5 million Class B shares at $10 each, announced Friday after plans were set in September, underscores the company’s ambition to capitalize on this momentum.
The IPO stands out as a rarity in the U.S., with Dealogic data indicating no comparable pure-play TV network public offering in recent decades. This comes at a time when traditional cable TV struggles against the rise of streaming, yet news and live sports remain bright spots, drawing the largest audiences and advertising dollars. Newsmax has carved a niche as the No. 4 cable news channel in the U.S., trailing only Fox News, CNN, and MSNBC, a position Nielsen confirmed Monday with consistent ratings data. Ruddy highlighted this achievement on CNBC’s “Squawk Box,” noting the network’s climb into the top 20 for average viewership in both prime time and daytime—a feat he deems impressive for a company just 10 years into its cable incarnation. Available through most major pay-TV providers, Newsmax has steadily built its reach, positioning itself as a viable competitor in a landscape long dominated by bigger players.
Ruddy’s vision hinges on filling a perceived gap in the cable news ecosystem, where Fox News has reigned without a direct rival in the center-right space. His confidence was bolstered by a Tuesday social media post recounting a call from Trump, where he quipped, “A rising Trump lifts all boats!”—a nod to the symbiotic relationship between the network’s growth and the political climate. The stock’s 525% midday leap from its $14 opening suggests investors are buying into this narrative, betting on Newsmax’s ability to sustain its post-election surge. While the broader cable industry faces headwinds, Newsmax’s focus on a loyal, expanding audience and its timely IPO could redefine its role in the media market. For a network that ranks fourth in cable news and top 20 overall, this public launch at $14 a share signals both a financial and cultural milestone.
WallStreetPit does not provide investment advice. All rights reserved.
Leave a Reply