A similar thing happened to Vanderbilt station WRVU.
Only they got sold to NPR.
Not quite true on either count. First, NPR doesn't own any stations at all. They are prohibited from doing so by their charter. (no such restriction on Public Radio International or American Public Media, however) WRVU was
sold to the local NPR affiliate, WPLN. WPLN used it so they could have full-time signals dedicated to news (WPLN) and classical (WRVU, aka WFCL) instead of doing both on WPLN.
A bigger deal is that the STUDENTS of Vanderbilt sold the station. WRVU was not owned by Vanderbilt University, it was owned by an independent group (the VSC) that managed various student media outlets at Vanderbilt, and the board of directors was mostly students. I checked the ownership reports and it was the case. The stated reason was that student interest in WRVU had waned severely, whereas student interest in the campus newspaper was still reasonably high. The problem was that funding for the newspaper had dried up, so the sale of WRVU was to be used for an endowment to support the newspaper. A strategy that I personally found highly questionable, but I guess it made sense to them...and admittedly they know a heckuva lot more about their own finances than I do! :
Personally I don't believe that "college radio" must automatically be for the students. In the pre-internet age, when radio was all their was, there was a strong argument for such a thing. But today it's pretty damn hard to justify wasting a radio license on a club that inherently is serving the interests of its members before it serves the interests of its listeners/community. Not when you can effectively have a webcast-only "radio station" that effectively fulfills all the same functions of being a learning experience and training ground for students. Granted, a lot of webcast-only stations aren't given the funding/tools to actually DO that, but that's not a fault of the medium. And considering the high (compared to other student activities) cost of operating an FCC-licensed station, and the substantial regulatory liability, and the lack of any connection to a college's core mission...is it any surprise that colleges are selling off their licenses?
I mean, sure, they COULD spend the money to hire professional staff to put out a quality product and serve as a good local resource while doubling as a beneficial marketing outlet for the college. Sure they could do that. But where's the ROI? Most colleges aren't necessarily recruiting students from their local area. Quite often they're recruiting students from well outside it. And even if they are recruiting locally...there's a heckuva lot cheaper (and more effective) ways to go about it than to try and run a top-notch competitive radio outlet. Not to mention there's that whole "drowning in red ink" problem a lot of colleges are facing. Kinda hard to justify spending $150k/yr on the radio station when the entire chemistry department just got laid off. Unless the college has a broadcasting curriculum (or a related curriculum, like journalism) then the ROI usually just isn't there for most colleges.
What I find stunningly short-sighted is how many people are blaming the NPR stations for buying these licenses. The stations were going to sold no matter what, folks. Would you prefer yet another religious "satellator" with little, if any, local relevance at all? At least with most NPR outlets there is a semblance, if not a serious commitment, to serving the local community.