While the financial details of Newsmax’s settlement with Smartmatic Voting Systems remained hidden from public view, a new report reveals the eye-popping amount the network was forced to cough up.
As Newsmax prepares to go public reports revealed the network paid Smartmatic $40 million and a stock warrant to end its legal battle against the conservative brand. (RELATED: Newsmax Settles Election Defamation Lawsuit With Smartmatic)
The figure is buried in an investment prospectus released this week and discovered by The Independent‘s Justin Baragona.
Mediaite reports:
In the filing Newsmax, disclosed that it agreed to pay Smartmatic $40 million in cash — along with a five-year warrant allowing the tech firm to purchase 2,000 shares of the network’s preferred stock. Newsmax was accused of defaming Smartmatic by broadcasting false claims that the voting machine company played a role in rigging the 2020 presidential election in favor of Joe Biden over Donald Trump.
The revelation comes as Newsmax faces another massive legal battle with Dominion Voting Systems, which is set to go to trial in April.
Newsmax acknowledged the potential fallout in its filing, warning investors that “an unfavorable outcome in the matter could have a material adverse effect on the Company’s financial position, results of operations, and cash flows.”
For Newsmax, the settlement appears to represent a significant financial strain. The network pulled in $135 million in revenue in 2023, but its net losses hit $55 million in the first half of 2024. The company has also disclosed a separate, undisclosed settlement over a breach of contract dispute, with $34.6 million still left to pay.
In 2023, Fox News and Dominion Voting Systems reached a $787.5 million settlement over the network’s coverage of President Donald Trump‘s claims of voter fraud in the 2020 election.
In a statement, Fox News Media said the network was “pleased” to reach a settlement and that it acknowledged “the Court’s rulings finding certain claims about Dominion to be false.”
Dominion Voting Systems filed a $1.6 billion lawsuit in 2021 following the presidential election. The company argued Fox News‘ airing of claims of voter fraud propagated by President Trump and his allies defamed the company and caused irreparable damage to its credibility.
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