MAGA hits the market

Conservative TV network Newsmax said it's planning to go public and launched a $225 million private placement, it said in a regulatory filing yesterday.

The big picture: Conservative companies see a financial opportunity in tapping into retail investment interest on the public market.

• Shares in former President Trump's publicly traded media company, which houses his app Truth Social, are up 32% since the company went public in March, despite the fact that the company continues to lose a lot of money.
• In an investor presentation, Newsmax quoted Trump saying, "You like Newsmax, I like it too ... Newsmax has been really good ... people are watching it ... it's terrific."

Zoom in: Newsmax said it plans to go public later this year or in 2025 either on the NYSE or Nasdaq with an offering of up to $75 million.

• It cited a lack of trust in mainstream news sources and viewership growth as opportunities for the firm as a publicly traded company.
• The Boca Raton-based firm earned $135 million in top-line revenue last year, it said, down from $148 million in 2021 following the Jan. 6 Capitol siege. It's projecting $180 million in revenue this year.
• It didn't say whether it was profitable, but predicted it would achieve "30% + EBITDA margins within the next few years."

Reality check: Companies often present lofty projections to raise money ahead of their IPOs.

What to watch: Other conservative companies have not been able to ride the same retail investor wave as Trump Media & Technology Group.

• Shares in Rumble, a conservative alternative to YouTube that went public in 2022, are up more than 33% year-to-date but are down 40% overall since its IPO.
• Shares in Public Sq., a sales marketplace that promotes retailers with conservative values, are down 32% this year and more than 60% since it went public last year.