Salem Media Group announced on Monday (December 30) that it has sold its seven remaining contemporary Christian format radio stations to the Educational Media Foundation (EMF) for $80 million.
The agreement, which is pending approval by the U.S. Federal Communications Commission (FCC), will add or expand EMF programming in seven U.S. markets, including KLTY-FM stations in Arlington, Texas; WFSH-FM, Georgia Athens, Calif.; WFHM-FM in Cleveland; KFSH-FM in La Mirada, Calif.; KKFS-FM in Lincoln, Calif.; KBIQ-FM in Manitou Springs, Colo.; and KFIS- in Scarpus, Ore. FM.
EMF – the parent company of Christian broadcast networks Air1 and K-LOVE – said in a statement that it intends to launch K-LOVE or Air1 Worship Now programming on those signals based on market demand, pending FCC approval. The company said it plans to begin programming the stations through a local marketing agreement on February 1.
Also on Monday, Salem announced it had signed a $10 million advertising and marketing agreement with EMF.
Through its Air1 and K-LOVE networks, EMF reaches approximately 18 million listeners each week. Its Air1 and K-LOVE radio networks have more than 1,100 broadcast signals in all 50 states and provide global coverage through streaming audio.
Salem Media Group’s CCM format radio station most often operates under the nickname “The Fish”. The company was founded in 1974 as Salem Communications and changed its name to Salem Media Group in 2015. , digital media and book/newsletter publishing. The company’s other radio signals include 38 Christian teaching and talk radio stations and 30 news talk stations, according to a March 2024 company guide.
Salem’s sale of seven stations is part of a series of strategic transactions aimed at bolstering the company’s financial security. As part of this effort, the company repurchased all of its $159.4 million 7.125% senior secured notes due 2028 for $104 million in cash and $24 million in subordinated unsecured promissory notes. The notes are expected to be converted into Series A preferred stock by mid-2025. Salem also issued $40 million in Series B convertible preferred stock to the WaterStone Foundation, with proceeds used to fund Salem’s debt repurchases. On Dec. 23, Salem extended its revolving credit facility with Siena Lending Group for one year.
“As Salem begins to commit to its talk and informational programming, we are honored to carry the torch and keep Christian music flowing on these frequencies,” said Tom StultzEMF’s interim chief executive said in a statement. “These powerful stations expand our reach and help us fulfill our mission to reach more people with the gospel of Jesus Christ. We see this as a great opportunity to continue to provide listeners with Christian music in these important markets .
Edward G. AzingerSalem Media Group executive chairman and co-founder said in a statement: “We have made the strategic decision to exit contemporary Christian music formats in order to repay all of Salem’s long-term debt. We are very pleased that the buyer is EMF. For many years Come, EMF has demonstrated a unique ability and dedication to create and deliver the highest quality Christian music content to listeners in a positive and inspiring way that I believe will be highly effective in their impact on listeners and their communities.
This is not the first time Salem has sold products to EMF. In March, the company sold stations in Nashville and Honolulu to EMF for $7 million.
