Newsmax Settles with Smartmatic Amid Financial Strains

Newsmax has agreed to a $40 million settlement with Smartmatic over defamation claims related to false allegations that Smartmatic's voting machines were involved in rigging the 2020 U.S. presidential election. The settlement includes a $40 million cash payment and an option for Smartmatic to purchase shares in Newsmax. Newsmax plans to go public, and the settlement details were revealed in a regulatory filing. Despite the settlement, Newsmax is still embroiled in a defamation lawsuit with Dominion Voting Systems, which could impact the network's financial stability. The network reported revenues of $135 million in 2023 but a net loss of $55 million in the first half of 2024. Newsmax is using its existing cash reserves to cover legal settlements and states that no IPO proceeds will be allocated for these payouts.