Minnesota public radio announces agreement to sell KLBB Am 1400 radio

 (St. Paul)  --  May 25, 2005 — Minnesota Public Radio today announced that it has reached an agreement to sell commercial radio stations KLBB 1400 AM and KLBP 1470 AM in the Twin Cities to Davidson Media Group, LLC.  Minnesota Public Radio has been leasing KLBB and KLBP to The KLBB Company, a subsidiary of Greenspring Company, Minnesota Public Radio’s taxable, for-profit affiliate. 

The purchase price is $5.2 million.  The sale must be approved by the Federal Communications Commission (FCC), a process expected to take about 100 days.

 “The Board of Trustees’ decision to sell KLBB aims to further strengthen Minnesota Public Radio’s focus on its non-profit public radio mission,” said Bill Kling, president of both Minnesota Public Radio and Greenspring.  “The sale will mark the end of our involvement in commercial radio.”

With the launch earlier this year of a third non-commercial FM station in the Twin Cities, operated as KCMP FM, 89.3, The Current, Minnesota Public Radio now offers three distinct public radio broadcast services in the state.  In addition, it is

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increasing its Internet-based news and information offerings and sponsoring more events, such as the recent lecture by New York Times’ columnist Thomas Friedman.

“Our commitment is to the public radio audience,” said Kling.  “To continue to provide the highest level of service through our public radio operations, it is important to focus our time, talent and resources on them.”              

The sale of the stations will affect 10 full-time employees. They will be offered severance compensation based on length of service, as well as outplacement assistance.  They will also be given first opportunity to apply for open positions at Minnesota Public Radio, American Public Media and Greenspring Media Group (formerly Minnesota Monthly Publications).

The sale does not include the tower or property at 611 Frontenac Place in St. Paul, from which KLBB broadcasts.  Davidson Media will use the tower under a lease arrangement.  KLBP is located in Brooklyn Park and simulcasts the programming of KLBB.

“It has been a privilege to serve the loyal listeners of KLBB,” said Kling.  The KLBB Company has been operating the stations on a commercial basis with an American standards format of songs from the 1940s and 1950s.

Once the sale is final, Minnesota Public Radio’s Board will determine how the proceeds will be used.  With a new building under construction, the need to retire the debt from the purchase of 89.3 from St Olaf College, the need to convert 37 regional radio stations to digital technology, the advent of multicasting which allows more than one program service per channel, and other developments in public radio, the funds will be quickly deployed to public service purposes, according to Kling.

 “Innovation is at the heart of Minnesota Public Radio’s commitment to meet and exceed the needs of our public radio audiences,” said Kling.  “With the sale of KLBB, we will be able to focus on news, arts, music and entertainment programming, to the

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use of the Internet to disseminate programming, and to further develop a new journalism model that taps the expertise of our audience.” 

The sale does not affect any of Minnesota Public Radio’s noncommercial public radio stations, which in the Twin Cities include: KSJN 99.5 FM, broadcasting classical music; KNOW 91.1 FM, broadcasting news and information; and KCMP 89.3 FM The Current.

BACKGROUND

The KLBB Company is a subsidiary of Greenspring Company, a taxable, for-profit company that engages in communications activities that support the mission and goals of American Public Media Group (the nonprofit parent support organization of Minnesota Public Radio), but are more properly pursued by a taxable entity. Once the sale of KLBB and KLBP is final, Greenspring Media Group, which publishes Minnesota Monthly magazine and other publications and engages in various consumer show promotions, will be Greenspring’s remaining subsidiary. Greenspring provides leadership, capital investment and financial oversight to its subsidiaries

Minnesota Public Radio^® operates a 37-station radio network serving virtually all of Minnesota and parts of surrounding states and produces programming for radio, Internet and face-to-face audiences. Programs produced by Minnesota Public Radio and by its national production and distribution arm, American Public Media™, reach 14.7 million listeners nationwide each week. Of those, more than 771,000 listen regionally, in Minnesota and surrounding states. With 83,000 members, Minnesota Public Radio has the highest percentage of listener membership of any community-supported public radio network in the United States. A complete list of stations, programs and additional services can be obtained at www.mpr.org and www.americanpublicmedia.org.

Davidson Media Group, LLC, is a leader in providing multicultural, multi-lingual broadcasting to America’s radio audiences.  The privately owned company was founded and is led by Hispanic market industry veteran Peter Davidson.  Davidson Media Group owns 20 stations in North Carolina, Virginia, Rhode Island, Connecticut, Arkansas, Michigan and Kansas.  For more information, please go to www.davidsonmediagroup.com. 

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Source: Data are copyright Arbitron, Inc. Arbitron data are estimates only.
Fall 2004

Contact:  Dixie Berg

(651) 290-1276

dberg@mpr.org

www.mpr.org