Penn State approves sale of WPSU to WHYY

Penn State University’s board of trustees approved Monday a proposed sale of WPSU’s operating assets to Philadelphia’s WHYY in a deal that would keep the central Pennsylvania dual licensee operating for at least three years. 

WPSU, a joint licensee, faced a wind-down in operations after the board’s finance and investment committee rejected last month a deal that would have had Penn State paying $17 million over five years to aid the transition.

“WHYY has agreed on their own to go out and fundraise and raise money for that $17 million that is needed over the five-year period,” said Sara Thorndike, Penn State’s SVP for finance and business, during Monday’s meeting. “So they will continue to make every effort to raise money, at least for the first two years, which they have estimated to be $8.36 million.”

There will be a 30-day exclusivity period for WHYY to find financing commitments for that $8.36 million, according to the university. During that time, the university can still hear from parties interested in WPSU but can’t sign any other agreements as it works toward a “definitive agreement” with WHYY, Thorndike said. 

WHYY will pay the university $1 at closing, according to a presentation given during Monday’s meeting. 

The deal will require FCC approval, with the aim for it to close no later than June 30, 2026, Thorndike said. 

Thorndike said WHYY also agreed to operate WPSU for at least three years. 

“This is in response to the board’s concern that if we sold all of the assets to WHYY for the dollar, that they could monetize them,” Thorndike said. “That is not their intent, and they agreed to keep WPSU open for three years, although they have indicated a desire to keep it going for much, much longer than that.”

WHYY also agreed to interview employees who are interested in jobs that WHYY has “determined are needed,” Thorndike said. 

The finance and investment committee unanimously recommended the move to the full board Monday. The full board also unanimously approved the proposed deal. 

“This is a preferred outcome to what was presented previously,” said David Kleppinger, chair of the Penn State board of trustees. 

In a statement, WHYY CEO Bill Marrazzo said that joining forces helps build a more sustainable and vibrant future for public media. 

“This transaction honors WPSU’s rich legacy while advancing WHYY’s mission to ensure that everyone, including those 1.5 million community members in Central Pennsylvania who count on WPSU, has access to free, non-commercial public media celebrating trusted local journalism, quality entertainment, and lifelong learning,” Marrazzo said. 

This story has been updated to include a statement from WHYY’s Marrazzo.