Salem Media Group Announces the Sale of Regnery Publishing

Rhea-AI Summary

Salem Media Group, Inc. (NASDAQ: SALM) has reached an agreement with Skyhorse Publishing to sell Regnery Publishing, with the transaction expected to close by the end of the year. The more than 1,500 Regnery titles will be absorbed into the Skyhorse Publishing catalogue. Founded in 1947, Regnery Publishing has an impressive list of authors over its 75 years, including former President Donald Trump, Senator Rand Paul, Senator Ted Cruz, Senator Mitt Romney, Tulsi Gabbard, Eric Metaxas, former President Ronald Regan, and Ann Coulter.

Insights

Financial Analyst

The sale of Regnery Publishing by Salem Media Group to Skyhorse Publishing represents a strategic business decision that may influence Salem Media's financial structure and future revenue streams. The transaction's completion by year's end suggests a potential shift in Salem Media's asset composition and a possible focus on core competencies. The acquisition includes a catalog of over 1,500 titles, which could enhance Skyhorse Publishing's market presence and diversify its portfolio.

Financially, the deal could result in a one-time gain or loss on Salem's balance sheet, depending on the agreed-upon sale price versus the book value of Regnery Publishing. In the long-term, the divestiture could streamline Salem's operations, potentially improving profitability if the publishing arm was underperforming. For Skyhorse, the acquisition is an opportunity to expand its conservative literature segment, potentially increasing market share and revenue.

Stakeholders should monitor the transaction's impact on Salem's financial health, including liquidity and debt levels, as well as Skyhorse's ability to integrate the new titles and leverage them for growth. The deal may also affect the competitive landscape in conservative publishing, with potential implications for other market players.

Industry Analyst

The sale of Regnery Publishing signifies a notable consolidation within the niche market of conservative publishing. Regnery's reputation and extensive author list, featuring high-profile political figures, offer Skyhorse Publishing a substantial foothold in this segment. The mention of synergies and growth opportunities suggests that Skyhorse anticipates operational efficiencies and market expansion.

From an industry perspective, the consolidation could alter the dynamics of conservative book publishing, potentially impacting the variety and availability of such works. The deal may also signal a broader trend of specialization within the publishing industry, where companies seek to strengthen their position in specific genres.

It is essential to consider the cultural and political influence of literature in this genre, as it can impact public opinion and political discourse. The stewardship of Regnery's brand under Skyhorse will be crucial in maintaining its established identity and market appeal.

Legal Expert

The agreement between Salem Media Group and Skyhorse Publishing involves complex legal considerations, such as intellectual property rights, contracts with authors and regulatory compliance. The preservation of Regnery's identity as an imprint within Skyhorse suggests that existing contracts and author relationships will be honored and maintained.

Legal due diligence is critical in such transactions to avoid future disputes, ensure seamless transfer of assets and protect both parties' interests. The long-term success of the acquisition will partly depend on the legal framework established during the sale, which governs the management and operation of the acquired titles.

Furthermore, given the political nature of Regnery's publications, there may be heightened sensitivity around free speech and the potential for litigation. Skyhorse's commitment to free speech, as highlighted by Tony Lyons, could become a defining feature of the brand's legal and cultural identity post-acquisition.

IRVING, Texas--(BUSINESS WIRE)-- Salem Media Group, Inc. (NASDAQ: SALM) announced today that it has reached an agreement with Skyhorse Publishing to sell Regnery Publishing. The company expects to close the transaction by the end of the year.

David Evans, Chief Operating Officer of Salem Media, said, “We are thrilled to pass the torch of the oldest and most respected conservative publishing company in America to Free Speech advocate Tony Lyons and his incredibly successful Skyhorse Publishing. Salem is committed to the dissemination of conservative ideas and is excited that Skyhorse will both be a powerful steward of this important brand and an engine for its future growth.”

Tony Lyons, President and Publisher of Skyhorse Publishing, added, “We are so pleased to acquire this legendary publishing company, founded over 75 years ago, and are committed to building on the strong foundation that the Regnery staff has developed. We see a lot of synergies and opportunities for growth and will work hard to promote, market, and sell the books we have acquired and those that are pending, as well as to develop and pursue exciting new projects. Regnery will be an imprint of Skyhorse Publishing and will maintain its own identity.”

The more than 1,500 Regnery titles will be absorbed into the Skyhorse Publishing catalogue. The former Washington D.C. based publishing house was founded in 1947 by Henry Regnery and acquired an impressive list of authors over its 75 years, including former President Donald Trump, Senator Rand Paul, Senator Ted Cruz, Senator Mitt Romney, Tulsi Gabbard, Eric Metaxas, former President Ronald Regan, and Ann Coulter.

ABOUT SKYHORSE PUBLISHING:

Skyhorse Publishing, one of the largest independent book publishers in the United States, was launched in September 2006 by Tony Lyons, former president and publisher of the Lyons Press. The company has had fifty-seven New York Times bestsellers and currently has over 10,000 titles in print.

Skyhorse maintains a firm stance against censorship and aims to provide a full spectrum of political, theological, cultural, and philosophical viewpoints to counter the increasingly biased environment in mainstream media.

Through its twenty imprints, Skyhorse publishes an eclectic and maverick list of titles. Its imprints — Allworth Press, Arcade Crime Wise, Arcade Publishing, Carrel Books, Children's Health Defense, Clydesdale Press, Front Page Detectives, Good Books, Helios Press, Hot Books, Night Shade Books, Not For Tourists, Racehorse For Young Readers, Racehorse Publishing, Sky Pony Press, Sports Publishing, Talos Press, Yucca Publishing, Skyhorse Publishing, and World Almanac — cover everything from nature, sports, country living, history, reference, travel, humor, health, art, business, philosophy, religion, current events, politics, investigative and conspiracy, to fiction, literary nonfiction, science fiction, fantasy, and young adult and children’s literature. Its backlist includes more than ten thousand titles. Skyhorse is distributed by Simon & Schuster in the U.S. and abroad.

ABOUT SALEM MEDIA GROUP:

Salem Media Group is America’s leading multimedia company specializing in Christian and conservative content, with media properties comprising radio, digital media and book and newsletter publishing. Each day Salem serves a loyal and dedicated audience of listeners and readers numbering in the millions nationally. With its unique programming focus, Salem provides compelling content, fresh commentary and relevant information from some of the most respected figures across the Christian and conservative media landscape. Learn more about Salem Media Group, Inc. at www.salemmedia.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20231222615634/en/

Evan D. Masyr

Executive Vice President and Chief Financial Officer

(805) 384-4512

evan@salemmedia.com

Source: Salem Media Group, Inc.

FAQ

What is the name and ticker symbol of the company mentioned in the press release about Regnery Publishing?

Salem Media Group, Inc. (NASDAQ: SALM) is the company mentioned in the press release.

What is the agreement announced by Salem Media Group, Inc. (NASDAQ: SALM) regarding Regnery Publishing?

Salem Media Group, Inc. (NASDAQ: SALM) has reached an agreement with Skyhorse Publishing to sell Regnery Publishing.

When is the expected closing date of the transaction between Salem Media Group, Inc. (NASDAQ: SALM) and Skyhorse Publishing regarding Regnery Publishing?

The transaction is expected to close by the end of the year.

Who are some of the notable authors associated with Regnery Publishing mentioned in the press release?

Some notable authors associated with Regnery Publishing mentioned in the press release include former President Donald Trump, Senator Rand Paul, Senator Ted Cruz, Senator Mitt Romney, Tulsi Gabbard, Eric Metaxas, former President Ronald Regan, and Ann Coulter.