Salem Communications to Buy Radio Station, Satellite Network

Salem Communications Corp. in Camarillo, owner of radio stations and other businesses targeted to the Christian market, has reached agreements to buy a Dallas radio station and a satellite network based in Nashville, Tenn.

The company will pay $7.5 million to AMFM Inc. to acquire KSKY-AM in Dallas. As part of the deal, Salem will give up KPRZ-FM, one of its three stations in Colorado Springs, Colo.

Pending regulatory approvals, Salem expects this transaction to close by the end of June.

In a second transaction, Salem will acquire Nashville-based Reach Satellite Network for $3.1 million.

Salem announced that James R. Cumbee, principal owner and president of Reach Satellite Network and a former executive with the Walt Disney Co., has joined Salem’s management team as president of its Other Media division. Cumbee, who will remain in Nashville, will oversee the operations of Salem’s Internet subsidiary, OnePlace Ltd., and its publishing company, CCM Communications.

After completion of the KSKY acquisition, Salem will own one AM and one FM station serving the Dallas-Fort Worth area, the nation’s sixth-largest radio market, and will continue to own and operate KGFT-FM and KBIQ-FM in Colorado Springs.

“Following on the heels of our recent acquisitions in Washington, D.C., and San Francisco, the KSKY acquisition reflects the execution of our strategy of building duopolies and triopolies in markets where we already have a presence,” said Edward Atsinger, Salem’s chief executive.

The assets of Reach Satellite Network include the Solid Gospel Radio Network, a Southern Gospel music programming service with more than 115 affiliate radio stations nationwide, two Nashville radio stations and a Web site.