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Midwest Acquires Five From Red Rock Radio

95 KQDS 94.9 Duluth Midwest Communications Red Rock RadioMidwest will pay Red Rock Radio $5.625 million for the five stations and three translators it is acquiring.

In order to fit 96.1 KGPZ Coleraine under the ownership caps, Midwest intends to divest or surrender the license of Classic Rock 102.9 KMFG Nashwauk MN prior to closing. Northpine.com also adds that Midwest is able to fit KQDS-FM under the ownership limits in Duluth thanks to the launch of a few new non-commercial stations in the market in recent years bringing the market above the 30 station minimum required to own seven in a market.

Original Report 8/23: Midwest Communications is acquiring five Minnesota stations and three translators from Red Rock Radio for an undisclosed amount.

Midwest will acquire Classic Rock “95 KQDS” 94.9 KQDS-FM Duluth MN and its simulcasters 95.3 WXXZ Grand Marais and 106.7 KAOD Babbitt as well as Country “Z96.1” KGPZ Coleraine/Grand Rapids, AC 97.9 WEVE-FM Eveleth/Virginia and its three translators: 92.1 W221AU Virginia, 98.3 W252AN Hibbing, and 105.5 W288AI Ely.

KQDS-FM will join Midwest’s existing 3 AMs and 3 FMs in the Duluth/Superior market, while KGPZ and WEVE-FM join Midwest’s existing 2 AMs and 4 FMs in the nearby Hibbing market.

After the sale of KQDS-FM, Red Rock will still retain 1 AM, 2 FMs, and 1 TV in the Duluth market.

Midwest Communications has agreed to acquire five outlets and three translators in Minnesota from Red Rock Radio Corp. Terms were not immediately disclosed. Included in the deal are 100kW KQDS-FM (94.9)/Duluth, 100kW WEVE-FM (97.9)/Eveleth, 100kW KGPZ-FM (96.1)/Coleraine, 63kW WXXZ-FM (95.3)/Grand Marais and 33kW KAOD-FM (106.7)/Babbitt along with affiliated translators W252AN/Hibbing, W288AI/Ely and W221AU/Virginia.

Midwest Communications is a Wisconsin-based company headed by Duke Wright and owns 73 radio stations throughout Tennessee, Michigan, Wisconsin, Indiana, and Minnesota. Red Rock Radio, is a Minnesota-based company headed by Kathy Lau and Shawn Skramstad and owns 24 radio stations in Minnesota.

Kalil & Co., Inc. is the broker for this transaction.

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Lance Venta is the Owner and Publisher of RadioInsight.com and a consultant for RadioBB Networks specializing in integration of radio and the internet. Lance has two decades of experience tracking the audio industry and its use of digital platforms.

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