The end of the business day on Tuesday brought big news for our parent company, Salem Media. It announced that The Christian Community Foundation, Inc., d/b/a WaterStone, is acquiring Salem Media in a transaction that will be finalized in August.
WaterStone will acquire all outstanding shares of Salem Media stock for $1.00 per share, which, according to Salem’s press release, is roughly a 250% premium over Salem’s recent stock price. According to WaterStone’s website, the company is “committed to advancing Kingdom values through faithful stewardship, financial integrity, and principled leadership. Our community shares a deep dedication to personal spiritual growth and glorifying God in every aspect of our financial and business decisions.”
Salem Media is experiencing a period of growth while similar companies are losing revenue. The press release indicates that, while much of the radio industry has suffered losses, Salem Media has expanded. Of course, Salem’s portfolio is more than just radio. In addition to Christian and conservative talk stations, Salem Media offers streaming news, documentaries, and, of course, the Townhall Media family, which includes PJ Media.
“For the last ten years the Atsinger and Epperson families have been looking for a successor that would continue to carry the torch of delivering quality Christian and conservative media into the next generation and beyond, said Edward Atsinger III, Salem co-founder and board member. “When we met with WaterStone, some 24 months ago, we believed it was a divine appointment. WaterStone is deeply aligned with the vision we had when our families founded this company.”
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WaterStone has been investing in and working with Salem Media, so this acquisition is the next level of that partnership. It will give Salem Media more breathing room to fulfill its vision. From the press release:
Over the last 18 months, Salem and WaterStone have worked together on several strategic initiatives tied to the company’s long-term growth and organizational vision. WaterStone’s previous preferred stock investments in Salem gave them 49.5% voting interest in the company.
Today, Salem remains one of the largest Christian and conservative multimedia companies in America, reaching millions of listeners, readers, viewers, and podcast consumers each month through its national radio network, streaming platforms, digital media brands, and publishing platforms.
“WaterStone understands who we are and why Salem has mattered for over 50 years,” Salem CEO David Santrella said. “This partnership will accelerate our ability to expand the reach of our mission for years to come.”
“This is about building on what makes Salem unique,” said Richard von Gnechten, chairman of Salem Media’s Board of Directors and president of WaterStone. “Salem has spent decades earning the trust of listeners, ministries, advertisers, and audiences by staying true to its mission. WaterStone believes deeply in that mission and in the people behind it. This partnership gives Salem additional strength and long-term stability while creating new opportunities to expand its reach for the future — which is why we are making this investment.”
Naturally, announcements like these have ripple effects. The writers here at PJ Media wondered what it all means. I wondered what the ramifications of the acquisition would be. The bottom line is that, come August, Salem Media will be completely private and not beholden to stockholders, some of whom may not have values that align with Salem’s.
God-fearing, conservative leadership gives us the freedom to do what we’re called to do without worrying about the markets. And that’s a good thing.
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