Financial Times: Newsmax's Rise Is Credible, Profits Could Boom

Left-wing media doesn't like Newsmax's IPO success, but Britain's respected Financial Times (FT) is telling global investors that Newsmax is a real business that does indeed threaten Fox News and other legacy media.

On Wednesday the Times headlined: "Meet Newsmax, a Trump-Adjacent Business with Credible Prospects."

The paper claimed that even if cable was declining Newsmax could "generate a lot of cash" from advertising and subscriptions.

The FT also chided other media for criticizing Newsmax's market rise – reaching a capitalization of close to $30 billion this week.

"But do not discount the network's influence in right-wing circles and the resulting opportunity to build a meaningful business over time," the FT warned.

Newsmax (symbol NMAX) shows "stack up well against Fox News," but the big difference is that "Newsmax has barely made a start on monetizing its subscribers."

This means Newsmax has the ability to significantly grow its cable license fees in the years ahead.

"Expect Newsmax to begin charging distributors a sum that is more in line with its own ratings and that of the peers it is already challenging in viewership figures," the FT predicted.

"Newsmax is building a streaming platform too, which has a subscription tier that charges $4.99 each month."

The FT sees Newsmax rise paralleling the rise of President Donald Trump whose own prospects have long been discounted by the major media.

But the FT sees Newsmax as "one of the most interesting entrepreneurial bets of the Trump era."

The secret of its success?

"...Billionaire founder Christopher Ruddy is simply wagering that even a dying industry can support a new entrant, if it produces content people want," the FT stated.

And people really want Newsmax.

More than 40 million Americans tune in regularly and just last year the Reuters Institute said Newsmax was one of the top 12 U.S. news brands.

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