“Salem rarely leaves a market.”
Those were the words spoken by Salem Media Group CEO Ed Atsinger in late 2016, when the company — with its stock in the low-$6 range — agreed to transfer the operation of its three Louisville, Ky., stations to Word Broadcasting Network under a Local Marketing Agreement.
Thirty-seven months later, the Word is the bird: It’s officially flying away with the three Salem-owned properties, marking another sale of non-essential assets as Salem struggles with stock prices last seen in July 2009 as it prepares to pitch its wares Feb. 17 at Noble Capital Markets’ Sixteenth Annual Institutional Investor Conference at the Hard Rock Hotel and Casino in Hollywood, Fla.
The stations formally trading hands are as follows:
- Class D Christian Talk & Teaching WFIA-AM 900, a two-pattern facility with 1 tower broadcasting with 930 watts during daylight hours and 162 watts by night
- Class A Christian Talk & Teaching WFIA-FM 94.7, licensed to New Albany, Ind., with 3.3 kw at 394 feet, branded as “The Spirit.”
- Class B Talk WGTK-AM 970 “The Answer,” a two-tower, two-pattern facility with 5kw day/night
The purchase price is $4 million. However, the price Word is paying is dependent on when the deal closes. If closing transpires before March 31, a $250,000 credit against the purchase price will be given.
If the transaction closes at any time, Word will receive a credit toward the purchase price of a sum equal to the monthly fees paid under the Time Brokerage Agreement that began in January 2017 for months 4-29 of the TBA and a sum equal to $2,000 per month for each monthly fee payment for months 30 and thereafter of the TBA; a credit towards the purchase price of the $450,000 option payment made under the TBA will also be applied.
Serving as Salem’s legal counsel is Kathleen Kirby of Wiley. Word’s legal counsel is Anthony Lepore.
Word owns and operates 12 religious-themed radio stations, a short wave facility, and WBNA-Channel 21 in Louisville. WBNA features iON Television Network programming on Channel 21.1; HD multicast offerings are comprised of GetTV, GOD, retro tv, Decades, and Heroes & Icons.
Word also owns WBN – The Revival Channel, presented by Jesus Is Lord Ministries International, which airs 24/7 ministry and religious-focused programming.
Salem acquired WGTK in August 2000 from Hearst-Argyle; WFIA-FM took on its present format in Sept. 2002, after a format change from Rhythmic Oldies WLSY-FM “Soul 94.7” and, prior to that, AC WRVI-FM “The River” under then-owner Cox Radio.
WFIA-AM has aired inspirational programming since at least Sept. 1967, when Broadcasting magazine profiled the Louisville market and noted the station describes itself as the area’s “exclusive religious-patriotic station.”
This is not Salem’s first step in reducing its operations in Louisville. In August 2008, the company sold what is now WAYK-FM 105.9 to WAY-FM Media Group for $3 million.
Salem stock as of 10:03am Eastern Feb. 12 was trading at $1.39, up 3% from Feb. 11’s closing price — a fresh 10-year low.
Salem carries a 1-year target estimate of $3.63 per share.
