NEW DELHI: U.S. cable news network Newsmax has made headlines with an extraordinary surge in its stock price following its initial public offering (IPO) on the New York Stock Exchange. After debuting at $10 per share on Monday, the stock skyrocketed 735% in its first trading session, closing at $83.51. The rally continued on Tuesday, with shares surging another 179% to close at $233, marking a total increase of 2,230% from the IPO price in just two days.
Newsmax’s market cap
With a market capitalisation now exceeding $30 billion, Newsmax has surpassed major media conglomerates such as Fox News’ parent company Fox Corp, News Corp, The New York Times, Warner Bros. Discovery, Trump Media, and Paramount. The unprecedented stock performance has positioned Newsmax as a formidable force in the media industry, despite the broader challenges facing traditional cable television.
The company raised $75 million through its IPO by selling 7.5 million equity shares at $10 each. Additionally, Newsmax secured $225 million earlier this year through private preferred shares. The funds raised will be utilised for talent acquisition, programming, distribution, digital expansion, marketing, and working capital.
Christopher Ruddy: Visionary behind Newsmax
Christopher Ruddy, the founder and CEO of Newsmax, has seen his wealth skyrocket alongside the company’s stock price. Holding approximately one-third of Newsmax’s shares, his net worth now stands at an estimated $9.1 billion.
Born and raised in Long Island, New York, the son of a police officer, Ruddy pursued higher education at St. John’s University, where he graduated summa cum laude with a degree in history. He later earned a master’s degree in public policy from the London School of Economics. His career began in journalism, where he worked as an investigative reporter for the New York Post and later the Pittsburgh Tribune-Review.
Recognising the potential for a conservative-leaning media platform, Ruddy founded Newsmax in 1998 with an initial investment of $25,000 from billionaire heir Richard Mellon Scaife. By 2009, Ruddy owned 60% of the company, while Scaife remained a silent partner with a 40% stake.
Beyond Newsmax
Over the years, Newsmax evolved into a multimedia empire, expanding beyond digital content to television. The company’s cable channel, launched in 2014, quickly gained traction, attracting millions of viewers. According to Forbes, Newsmax reached 30 million regular viewers in the final three months of last year, solidifying its position as the fourth-largest news channel in the US.
Ruddy’s influence extends beyond Newsmax. He has been named among the “100 Most Influential Conservatives” in the US by The Daily Telegraph and has served as a Media Fellow at the Hoover Institution at Stanford University. He also sits on the Board of Directors of the Financial Publishers Association. A well-connected figure in media and politics, Ruddy has maintained close ties with U.S. President Donald Trump. His influence has contributed to Newsmax’s rise as a major player in conservative news.
Phone call from Trump
Ruddy recently revealed that he received a phone call from Trump from the Oval Office to discuss Newsmax’s IPO and its ongoing expansion.
“I received a nice call from Pres. Trump today from the Oval Office (note name on cell). We talked Greg Kelly interview tonight, latest McLaughlin poll, and Newsmax’s IPO next week! I shared with POTUS my new saying: ‘A rising Trump lifts all boats!’”
Newsmax’s key investors and influential backers
Newsmax’s soaring valuation has not only enriched Ruddy but also benefited its major investors. Among them, Thomas Peterffy, a billionaire GOP donor and Palm Beach resident, owns 23 million Class B shares.
Despite his confidence in Newsmax’s potential, Peterffy expressed surprise at the stock’s rapid rise, stating, “It was not justified by fundamentals.”
Sheikh Sultan bin Jassim al-Thani, a member of Qatar’s royal family, holds nearly 20 million shares, now valued at approximately $4.7 billion.
Newsmax’s future and growth plans
Despite challenges in the broader cable TV industry
Speaking to CNBC, Ruddy highlighted Newsmax’s reach and ambitions, “We’re the No. 4 cable news channel in the United States, right behind CNN. We’re also No. 7 among all cable channels based on Nielsen’s coverage rating.”
The company, which began as a digital-first operation, has now solidified its place in cable television. Its Newsmax2 streaming service reaches an estimated 15 million regular viewers, and the company is also planning to expand into subscription-based content, aiming to compete with platforms like Netflix by offering family-friendly news and entertainment.
Ruddy remains optimistic about Newsmax’s future growth, pointing to its 300% revenue increase over the past five years.
“We’ve had nearly 30% revenue growth last year alone,” he noted.
“As a new growth stock, Newsmax is proving that it can expand rapidly even in a challenging media environment.”