djfrosty

Salem Media Group has sold its seven remaining Contemporary Christian-formatted radio stations to the Educational Media Foundation (EMF) for $80 million, the company announced Monday (Dec. 30).

The agreement, which is pending approval from the Federal Communications Commission (FCC), will add or expand EMF programming to seven U.S. markets, with stations including KLTY-FM in Arlington, Texas; WFSH-FM in Athens, Ga.; WFHM-FM in Cleveland; KFSH-FM in La Mirada, Calif.; KKFS-FM in Lincoln, Calif.; KBIQ-FM in Manitou Springs, Colo.; and KFIS-FM in Scappoose, Oreg.

EMF — the parent organization of Christian radio networks Air1 and K-LOVE — noted in a statement that it intends to launch K-LOVE or Air1 Worship Now programming on those signals according to market needs, pending FCC approval. It indicated that it aims to begin programming the stations via a local marketing agreement on Feb. 1.

Also on Monday, Salem announced that it has entered into an advertising and marketing agreement with EMF for $10 million. 

Through its Air1 and K-LOVE networks, EMF reaches approximately 18 million listeners each week. Its Air1 and K-LOVE radio networks have over 1,100 broadcast signals across all 50 states, with global reach through streaming audio.

Salem Media Group’s CCM-formatted radio stations were most commonly operated under the nickname “The Fish.” Founded as Salem Communications in 1974, the company rebranded as Salem Media Group in 2015. It has since grown to become a multimedia company with properties including talk radio, digital media and book/newsletter publishing. According to a March 2024 corporate guide, the company’s other radio signals include 38 Christian teaching and talk radio stations and 30 news talk stations.

Salem’s sale of the seven stations came as part of a group of strategic transactions aimed at shoring up the company’s financial security. As part of this effort, the company repurchased all $159.4 million in outstanding 7.125% senior secured notes due 2028 for $104 million cash and $24 million in subordinated unsecured promissory notes. By midyear 2025, those notes are slated to be exchanged for series A preferred stock. Salem also issued $40 million in series B convertible preferred stock to the foundation WaterStone, with proceeds being used to fund Salem’s debt repurchase. On Dec. 23, Salem extended its revolver line of credit with Siena Lending Group for one year.

“As Salem has leaned into its talk and information programming, we are honored to carry the torch and keep Christian music flowing over these frequencies,” said Tom Stultz, EMF’s interim CEO, in a statement. “These strong stations expand our coverage area and help us deliver on our mission to reach more people with the gospel of Jesus Christ. We feel it is an incredible opportunity to continue serving listeners with Christian music in these important markets.”

Edward G. Atsinger, Salem Media Group’s executive chairman/co-founder, said in a statement, “We have made a strategic decision to exit the Contemporary Christian Music format in order to pay off all of Salem’s long-term debt. We could not be more delighted that the buyer is EMF. EMF has demonstrated over many years a unique ability and dedication to creating and distributing the highest quality Christian music content to its listeners in a positive and encouraging way. I am confident that their impact on listeners and their communities will be incredibly effective.”

This isn’t Salem’s first sale to EMF. In March, the company sold its stations in Nashville and Honolulu to EMF for $7 million.