Salem Media Group has successfully finalized the sale of its seven remaining radio stations that are formatted for Contemporary Christian music to the Educational Media Foundation (EMF) for a significant sum of $80 million, as officially announced on Monday, December 30. This strategic move marks a pivotal moment for Salem, allowing them to refocus their business model while enabling EMF to expand its reach within the Christian broadcasting space.

The agreement is currently pending approval from the Federal Communications Commission (FCC), which will facilitate the addition or expansion of EMF programming across seven key U.S. markets. The stations involved in this transaction include notable frequencies such as KLTY-FM in Arlington, Texas; WFSH-FM in Athens, Georgia; WFHM-FM in Cleveland, Ohio; KFSH-FM in La Mirada, California; KKFS-FM in Lincoln, California; KBIQ-FM in Manitou Springs, Colorado; and KFIS-FM in Scappoose, Oregon. This expansion will enhance EMF’s presence significantly in these regions.

EMF, known as the parent organization for popular Christian radio networks such as Air1 and K-LOVE, expressed its intention to initiate programming like K-LOVE or Air1 Worship Now on the newly acquired signals, tailored to meet the specific needs of each market, contingent upon the FCC’s approval. The organization aims to commence programming through a local marketing agreement starting on February 1, signifying a quick transition to new content for listeners.

On the same day, Salem Media Group disclosed the establishment of a new advertising and marketing partnership with EMF, valued at $10 million. This collaboration is expected to enhance promotional efforts and expand the reach of both organizations, allowing them to leverage each other’s strengths in the competitive media landscape.

Through its Air1 and K-LOVE networks, EMF has successfully connected with approximately 18 million listeners weekly. With over 1,100 broadcast signals spanning all 50 states, their networks also boast a global presence through streaming audio platforms, making them a significant player in the Christian radio broadcasting industry. This vast audience underscores the importance of their programming in reaching and uplifting listeners across various demographics.

Salem Media Group’s Contemporary Christian music stations were commonly recognized by the nickname “The Fish.” Established initially as Salem Communications in 1974, the organization rebranded to Salem Media Group in 2015. Since then, it has evolved into a comprehensive multimedia company, encompassing various properties such as talk radio, digital media, and publishing initiatives. According to a corporate guide from March 2024, Salem also operates 38 Christian teaching and talk radio stations alongside 30 news talk stations, showcasing its diverse programming portfolio.

The decision to sell these seven stations is part of a broader strategic initiative aimed at enhancing the financial stability of Salem Media Group. In conjunction with this sale, the company successfully repurchased all outstanding $159.4 million in senior secured notes with a 7.125% interest rate due in 2028 for $104 million in cash and $24 million in subordinated unsecured promissory notes. By mid-2025, these notes are expected to be exchanged for series A preferred stock, marking a significant step in their financial restructuring. Furthermore, Salem issued $40 million in series B convertible preferred stock to the foundation WaterStone, with the proceeds designated for debt repayment. On December 23, Salem extended its revolver line of credit with Siena Lending Group for an additional year, further solidifying its financial position.

“In our continued efforts to focus on talk and information programming, we are honored to carry forward the legacy of providing Christian music through these frequencies,” stated Tom Stultz, the interim CEO of EMF. “These stations significantly expand our coverage area, allowing us to fulfill our mission of reaching more individuals with the gospel of Jesus Christ. We view this as an incredible opportunity to continue serving our audience with uplifting Christian music in these vital markets.”

Edward G. Atsinger, the executive chairman and co-founder of Salem Media Group, elaborated, “We made a strategic choice to exit the Contemporary Christian Music format to facilitate the complete repayment of Salem’s long-term debt. We are genuinely pleased that EMF is the buyer. Over the years, EMF has shown a remarkable commitment to creating and sharing high-quality Christian music content that resonates positively with its audience. I have confidence that they will have a profound impact on both listeners and their communities.”

This transaction is not Salem’s first engagement with EMF. Earlier in March, Salem sold its radio stations in Nashville and Honolulu to EMF for $7 million, demonstrating a growing relationship between the two organizations in the realm of Christian broadcasting.