Salem Media bought by WaterStone

[BoboKnight]

Here are their Q1 financials.

Salem Q1 Loss Narrows 64% Ahead of WaterStone Buyout - Radio Ink

Salem Media filed Q1 2026 earnings one day after its board approved a going-private sale to WaterStone — reporting a $2.6M net loss, an 11.2% revenue decline, and cost cuts that narrowed losses by more than half.

radioink.com

The financials are actually at the link below.

Their adjusted free cash flow for the quarter was negative $2.863 million. They had availability of $5.1 million and a cash overdraft of at least $1.5 million (the amount isn’t disclosed but that was the increase). By my math, at that burn rate, they will run out of cash in 1.26 quarters unless something changes.

https://d1io3yog0oux5.cloudfront.net/_f0cea8b34c1fef07f6cc30775f131927/salemmedia/db/874/7746/quarterly_report/Quarterly+Report+3-31-2026+OTC.pdf

 

[JustinT]

On the Christian talk/teaching side, the "brands" such that they exist aren't the stations, but are the ministries they air. The ministries also directly distribute on their websites and apps, and can be listened to at any time you want. Depending on how you look at it, Salem has been extremely lucky that their talk/teaching demographics are older and less tech-saavy, which has kept the train going this long. Under Salem, they've also been trying to pull a profit, which can't put them at an operating advantage to the KHCBs and Moodys out there.

On the conservative talk side, not much to say that others haven't. Are there any markets where their talk stations are even in second place? The Answers are a weak presence in a market that is competitive, yet given demos, not overly attractive.

While there are plenty of duds, Salem has solid real estate in the mix -- 99.5 Los Angeles, 105.1 DC, 94.7 Denver, and FM presences in Dallas and Houston. WaterStone must have seen something. Going to be one to follow.

 

[TheBigA]

Are there any markets where their talk stations are even in second place?

We don't know since, for the most part, they don't buy the book in a lot of markets, including NYC.

By my math, at that burn rate, they will run out of cash in 1.26 quarters unless something changes.

WaterStone has to decide how important conservative talk radio is to its core mission. To assist them, the current administration will be hosting a prayer meeting.

https://www.detroitnews.com/story/news/nation/2026/05/13/white-house-aims-link-us-history-christianity-9-hour-prayer-festival/90058176007/

 

[DOGDOG]

On the Christian talk/teaching side, the "brands" such that they exist aren't the stations, but are the ministries they air. The ministries also directly distribute on their websites and apps, and can be listened to at any time you want. Depending on how you look at it, Salem has been extremely lucky that their talk/teaching demographics are older and less tech-saavy, which has kept the train going this long. Under Salem, they've also been trying to pull a profit, which can't put them at an operating advantage to the KHCBs and Moodys out there.

On the conservative talk side, not much to say that others haven't. Are there any markets where their talk stations are even in second place? The Answers are a weak presence in a market that is competitive, yet given demos, not overly attractive.

While there are plenty of duds, Salem has solid real estate in the mix -- 99.5 Los Angeles, 105.1 DC, 94.7 Denver, and FM presences in Dallas and Houston. WaterStone must have seen something. Going to be one to follow.

There talk stations aren't even in second place??? What would you expect? Nobody outside of those who work at their stations have ever heard of the hosts!

 

[DOGDOG]

As I said with Audacy and Cumulus, there is no downside to taking a radio company private. If someone is willing to put up the money, take it.

There may have been a time when being a public company, and trading on the stock market was a good thing for radio. Not anymore.

At least as a publicly trade company, there were reporting requirements.

 

[ted chittenden]

Public and privately held company owners have the same financing systems. They can get loans (either through a lender or by issuing bonds) or by selling more shares to the current “owners” or to additional share buyers. The buyer of Salem is a corporation, not a sole proprietorship so in this respect it works just like the same as now except that there is not an open market on the shares.

While you are correct as far as you go, publicly traded companies can get money from outside stockholders that privately held companies do not have access to--that's why privately-held companies go public in the first place. And, as another poster pointed out (I had forgotten this), there is the matter of the required reporting of information by publicly held companies to both the stockholders and the general public that assists in transparency.

Now both you and @TheBigA may be right that going private is the best choice for broadcasters given the current financial climate. However, I am one who believes that all choices have advantages and disadvantages to them even if most people (including yours truly at times) don't recognize the full impact of a decision until long after that decision has been made.

 

[davideduardo]

While you are correct as far as you go, publicly traded companies can get money from outside stockholders that privately held companies do not have access to--that's why privately-held companies go public in the first place.

Such companies "go public" for several reasons. First is to expand faster than a privately held "batch of shares" can attract. Second is to allow heirs to family businesses to develop a succession. Third may be a perception that the company is worth more in a broader market (this is why many of the tech stocks have done their first steps with private equity and then moved to a public offering).

And, as another poster pointed out (I had forgotten this), there is the matter of the required reporting of information by publicly held companies to both the stockholders and the general public that assists in transparency.

But that is just a requirement of the various stock exchanges to insure that listed companies are measurable; listing on one of the exchanges carries requirements. One we have seen in broadcasting is minimum share price and regular reporting.

The general public has little to do with this. That is why we call that data "Annual Report to Shareholders" and not "annual report to the public". Generally, companies require one to be a shareholder to attend such meetings. Just few allow "shareholders and a guest" to attend. Berkshire-Hathaway allows several guests and lets others buy tickets to avoid scalping because those meetings are "events".

Now both you and @TheBigA may be right that going private is the best choice for broadcasters given the current financial climate. However, I am one who believes that all choices have advantages and disadvantages to them even if most people (including yours truly at times) don't recognize the full impact of a decision until long after that decision has been made.

One of the frequently seen advantages of "going private" is moving focus from months and quarters to years and longer periods.

 

[Mediafrog+]

Curious about an aspect of the WaterStone takeover of Salem Media.

On May 13 a large number of Transfer of Control applications were filed with the FCC for certain Salem stations…but not for others.

For instance: In NYC the was a ToC filing for WNYM but not WMCA.

In Chicago WIND has a filing, but not WYLL.

Here in Texas DFW’s KWRD-FM has a filing, but not KSKY.

In San Antonio KSLR has a filing but not KLUP.

Neither KKHT nor KNTH in Houston has a filing.

So curious why that is? I suppose the simple answer is that another batch of ToC filings will be made. Perhaps it has something to do with the intermediate corporate entities the various stations are licensed to.

Or…is this a hint at possible spin-offs and which stations would be involved?

Any insight on this?