The conservative news outlet Newsmax has confirmed it received a substantial investment of around $50 million from a member of the Qatari royal family.
The Washington Post first substantiated the accusations through documents obtained by its reporters, who spoke to representatives of Newsmax and the royal's investment company.
Newsmax received funding from His Excellency Sheikh Sultan bin Jassim Al Thani in 2019 and 2020, through his London-based firm, Heritage Advisors.
A coalition of Arab states had economically and diplomatically isolated Qatar around the same time. The semi-constitutional monarchy desperately sought allies in the United States. The country also faces allegations of allowing terrorist financiers to operate freely within its borders, a claim Doha denies. (RELATED: Terrorist Shot & Killed By Armed Citizens: If Your Time Comes, Do The Same)
People who know Newsmax founder and CEO Christopher Ruddy have stated that he has long sought investors with deep pockets to compete with Newsmax's greatest rival – Fox News.
Newsmax and Heritage Advisors confirmed the investment after being presented with documents detailing the transaction, which show that Sultan subsequently transferred his stake to a Cayman Islands-based corporate structure. The $50 million investment represents a significant minority stake in Newsmax, a privately held media company estimated to be worth between $100 million and $200 million, according to S&P Global Market Intelligence.
The documents came from a trove of roughly 100,000 leaked files from Genesis Trust, a Cayman Islands-based financial services provider, which were obtained by the International Consortium of Investigative Journalists and reviewed by The Washington Post.
Schillings, a London-based law firm and representative for Heritage, said that Sultan bought the stake because he “saw potential for the investment to be profitable” and had not acted on behalf of the Qatari state.
Among the documents were internal forms prepared by Genesis that proposed the corporate structure would be “set up with the intention of benefiting the State of Qatar.” They depicted Sheikh Mohammed bin Hamad Al Thani, the younger brother of the ruler of Qatar and vice chairman of the country's sovereign wealth fund (QIA), as the “option beneficiary,” a term for a person who would take control of the structure under certain circumstances. The documents also state the structure's funds “will be used as directed by Sheikh Mohammed (on behalf of the Emir), most likely for the Qatar state pension fund.”
Former and current Newsmax employees told The Post that network management pressured on-air talent to soften their reporting on Qatar. Newsmax vigorously disputes these claims.
Heritage Advisors is also believed to be linked to federally charged United States Sen. Bob Menendez (D-N.J.). Menendez's January indictment includes the allegation that he received tickets for a Formula 1 race in Miami from a Qatari official affiliated with an unnamed investment firm. Its description matches that of Heritage's, although the firm itself is not accused of any wrongdoing. (RELATED: Senator Menendez, Foreign Policy Heavyweight, Won't Run Again As A Democrat)
Prior to Al Thani's investment, Newsmax had sought funding in separate discussions with the Qatari government. The network confirmed it approached the country's sovereign wealth fund to discuss a potential investment in about 2017, but nothing ever materialized.
Newsmax, already well-established as a conservative alternative to Fox News, experienced exponential growth following the 2020 presidential election due to its embrace of former President Donald Trump. One night, it even surpassed Fox News in the coveted 25- to 54-year-old demographic.
“We're here to stay,” Ruddy predicted at the time. But the network's viewership had peak, at least for now.
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