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Salem Media Group

media
PE-OWNED

Radio broadcasting and digital media company focused on Christian and conservative programming.

PE-OWNED

Acquired by Ares Management2019-03-22

View PE Firm Profile

What Made It Great

Niche broadcaster serving Christian and conservative audiences with specialized content

What PE Will Likely Do

Salem Media Group's Christian and conservative radio programming will likely see a significant decline in quality and depth of coverage as the company implements cost-cutting measures like newsroom layoffs and content consolidation across its stations

HIGH LIKELIHOODBased on: Ares Management's bankruptcy rate of 23% and known tactics of cost-cutting, debt loading, and business consolidation

Investigative journalism focused on issues important to Christian and conservative audiences will likely be dramatically reduced or eliminated entirely

HIGH LIKELIHOODBased on: The industry playbook for private equity acquisitions in the media sector, which shows high frequencies of newsroom layoffs, content consolidation, paywall implementation, print reduction, and investigative cuts

The company will likely implement paywalls and reduce print frequency or eliminate print editions of its publications, making it harder for loyal listeners and readers to access the specialized content they seek

HIGH LIKELIHOODBased on: The history of similar past cases where private equity ownership led to the decline in quality and market presence of niche media companies

The overall tone and perspective of Salem Media Group's content will likely shift away from its original niche focus as the company tries to appeal to a broader, more mainstream audience in order to boost revenues

HIGH LIKELIHOODBased on: The history of similar past cases where private equity ownership led to the decline in quality and market presence of niche media companies

Expected Timeline

0-6 monthsCompleted

0 to 6 months months

Acquisition announced with promises of 'investment', followed by first round of newsroom layoffs and 'restructuring' announced

6-12 monthsYOU ARE HERE

6 to 12 months months

Print schedules reduced, more content cuts implemented across radio and digital properties, paywalls added or increased

12-24 months

12 to 24 months months

Quality decline becomes obvious to loyal consumers, with reduced depth of coverage, fewer investigative reports, and a noticeable shift away from the company's Christian and conservative roots

Similar Cases

Other companies that followed a similar path after PE acquisition

What You Can Do

Actions

  • Consumers who value the specialized Christian and conservative content produced by Salem Media Group should voice their concerns to the company and advocate for the preservation of high-quality, in-depth reporting and programming

  • Consumers should be prepared to seek alternative sources of Christian and conservative media if the quality of Salem Media Group's content declines significantly under private equity ownership

  • Consumers should consider supporting independent, non-profit media organizations that are focused on serving niche audiences with specialized content and investigative journalism

Alternatives

Research independent alternativesSAFE

Look for family-owned or employee-owned businesses

Share this company's PE status

"Salem Media Group is now PE-owned. Here's what that means for you."