Newsmax Controversies: Weaves, Hijabs, and Hitler Rhetoric

Newsmax: More Than Meets the MAGA Eye?

Newsmax, the media company known for its conservative slant, is making moves that investors should pay attention to. The company is sending CEO Christopher Ruddy to the RBC Capital Markets Global Technology, Internet, Media & Telecommunications Conference in New York City this November. The conference is a prime spot for networking and potentially drumming up investment. Management will be available for one-on-one meetings throughout the conference.

But is this just another media outlet chasing dollars, or is there a larger strategy at play? It's tempting to dismiss Newsmax as simply a mouthpiece for a particular political viewpoint, but let's dig into the numbers and see if that narrative holds water.

Beyond the Headlines: Newsmax's Reach

Newsmax states its media properties reach over 40 million Americans regularly. That's a sizable chunk of the population (roughly 12% of the US). They cite Newsmax TV, the Newsmax App, Newsmax.com, and Newsmax Magazine as key drivers. They also boast over 20 million combined followers across social media. The Reuters Institute considers Newsmax a top U.S. news brand, and Forbes calls it a "news powerhouse."

These are impressive claims. But how do they translate into actual revenue and profit? The press release is suspiciously silent on those figures. Publicly available data on Newsmax's financials is limited, which makes independent verification difficult. (This opacity is common with privately held media companies).

Newsmax’s recent appearance on the NYSE under ticker symbol NMAX indicates a pursuit of wider investment. But how will they leverage this listing? Will the company focus on expanding its digital reach, or double down on its traditional media outlets?

Content Controversies and Brand Perception

It's impossible to ignore the controversies surrounding Newsmax's content. Recent examples include a Newsmax host claiming SNAP recipients are using benefits for "weaves" – a statement widely criticized as racist. Newsmax Host: SNAP Recipients Are Getting 'Weaves' Another host questioned whether the hijab is "congruent with American culture," sparking further outrage.

These incidents raise a critical question: how do these controversies affect Newsmax's brand and, ultimately, its bottom line? Do they alienate potential advertisers and investors, or do they galvanize their core audience and drive engagement?

The platforming of controversial figures like Nick Fuentes on Tucker Carlson's show (covered on Newsmax by Rick Santorum) also raises concerns. Santorum himself acknowledged that Kevin Roberts of the Heritage Foundation "sort of missed it" by defending Carlson's right to host Fuentes. It highlights the tightrope Newsmax walks between free speech and promoting harmful ideologies.

The appearance of Rabbi Yaakov Menkin on Newsmax, decrying “Hitler-era rhetoric in Palestinian drag” in the Mamdani-Tucker controversy, shows the type of commentary Newsmax is willing to host. How much of this content is performative, and how much reflects the genuine beliefs of Newsmax's leadership?

And this is the part of the report that I find genuinely puzzling. Newsmax wants to be taken seriously as a major media player, attracting mainstream advertisers and investors. Yet, they continue to broadcast content that is, at best, divisive and, at worst, outright offensive. Is this a calculated risk, or a fundamental misunderstanding of the market?

Perhaps Newsmax is betting that its core audience is large and loyal enough to offset any negative impact from these controversies. Maybe they believe that any publicity is good publicity. Or, maybe they simply don't care about the opinions of those outside their echo chamber.

Newsmax's Gamble: Doubling Down on Division?

It's difficult to escape the conclusion that Newsmax is deliberately courting controversy to solidify its position within a specific segment of the media landscape. It is a calculated strategy, but one fraught with risk. The long-term impact on the company's brand and financial prospects remains to be seen.