Regional Broadcaster Tops K-LOVE in $8.75M KDHX Auction
What the standoff says about the Christian radio industry.
It’s rare for a noncommercial FM radio station to nearly double in price during a bankruptcy auction. But that’s exactly what happened with KDHX 88.1 in St. Louis, a community radio station at the center of a bidding war between two giants in Christian radio: Educational Media Foundation (EMF), the parent of K-LOVE, and Gateway Creative Broadcasting, owner of JOY FM and Boost Radio.
KDHX in St. Louis. Source: Google Maps
A federal bankruptcy court approved the $8.75-million sale last month, with Gateway’s winning bid nearly doubling EMF’s initial offer from March.
The bidding war started after the station’s nonprofit owner, Double Helix Corporation, filed for Chapter 11 bankruptcy in March and struck an agreement for EMF to purchase KDHX at a base price of $4.35 million, offering up to $4.85 million if the sale closed within six months. That deal would have made EMF KDHX’s “debtor-in-possession,” with financial provisions for operational support.
But Gateway had already signed a letter of intent to buy KDHX last December, even extending a $400,000 loan to Double Helix during negotiations. The organization reported that it was surprised when KDHX entered bankruptcy and selected EMF as the principal creditor. In response, Gateway came back aggressively with a $5.5 million counter-offer and petitioned the bankruptcy court to force an open bidding process via an auction.
Although K-LOVE put up $8.5 million in the final round, it lost to Gateway by $250,000.
This outcome is unusual not just for the price but for the names involved. EMF dominates Christian radio nationally as the largest buyer and operator of Christian stations in the country. Gateway, while smaller, is a strong regional player with deep local roots in St. Louis.
The sale raises a broader question. Are regional broadcasters starting to push back against national consolidation? Or was this just a one-off product of timing, available capital, and local strategy?
Double Helix’s revenue and expenses from 2011 to 2023. Chart source: ProPublica
Financial pressure had been building at Double Helix long before it filed for Chapter 11 in March. Its most recent Form 990 tax filings show the organization had been operating at a loss, ending 2023 with just $63,604 in net assets, down from $391,257 at the beginning of the year. Also, its expenses exceeded revenue by $327,653.
Beyond the declining revenue from donations, KDHX faced years of internal shakeups and struggles. Volunteers in content production roles were ultimately dismissed in January 2025, live programming became automated, and longtime staff either resigned or were let go. Many former staff members, DJs, and listeners joined a larger group, the League of Volunteer Enthusiasts (LOVE) of KDHX, opposing the station’s leadership.
Bankruptcy filings revealed that Double Helix’s total liabilities had reached around $2 million. But with less than $7,000 in cash, the board ultimately decided to sell the FM broadcast license and related assets. (The station’s building was not part of the deal.)
Asked what drove the bidding war that saw KDHX’s value double, industry veteran Ted Semper of the digital trade publication HisAir pointed to relative value rather than broader industry trends. “I don’t think any one factor came into play in this deal other than both bidders determined what KDHX is worth to their radio ministry,” he says. “Gateway already has two full signals in St. Louis and obviously did not want K-LOVE in the market as well.”
Gateway and EMF’s aggressive bidding may suggest they viewed KDHX as a strategic acquisition in St. Louis, a top-25 media market as ranked by Nielsen.
“I think most Christian radio stations would prefer K-LOVE not be in their market. There’s only so many potential listeners to share,” Semper adds. “And when it comes to non-com’s, which most Christian stations are, it cuts the donor pie up a bit more. But in the case of St. Louis, Gateway Creative Broadcasting had the money to out-bid EMF. This would not be the case in many cities.”
Semper, who has been covering Christian radio for decades, has no doubt that industry consolidation will continue in the coming years. “K-LOVE still has a few holes to fill in the coverage in some major markets. And who knows, there may be another signal in St. Louis available to them in the future,” he says.
Most listeners value the quality of a station’s content over its origin, but local stations seldom have the resources to compete with syndicated content, Semper adds. However, he cites exceptions, such as Christian FM Media, where national names are offering listeners some local content.
TO OUR READERS: The mission of MinistryWatch is to help Christian donors become more faithful stewards of the resources God has entrusted to them. Do you know of a story that will help us fulfill our mission, or do you want to give us feedback about this or any other story? If so, please email us: [email protected]
Access to MinistryWatch content is free. However, we hope you will support our work with your prayers and financial gifts. To make a donation, click here.
