WMGM Atlantic City, NJ Sold For $6M

[Weeters 1916]

And no, it's not to Sinclair. Looks like they're the latest station to be gobbled up by spectrum speculators.

 

www.tvnewscheck.com/article/71810/wmgm-wildwood-nj-selling-for-6-million

[CircleSeven 1955]

 

And no, it's not to Sinclair. Looks like they're the latest station to be gobbled up by spectrum speculators. www.tvnewscheck.com/article/71810/wmgm-wildwood-nj-selling-for-6-million

 

I saw the paperwork last night. Folks hate seeing Sincrap gobbling stations left and right, as I do. But I really hate these speculators (OTA, NRJ & LocusPoint) with a passion. No TV Channel should go away. They can find other grids, instead of taking TV channels off the grid. Now the stations that's left will be prone to to severe co-channel interference, in-market and in adjacent markets. Many existing LP stations will do bye-bye, many will be gone anyway (the LP analogs) by 9-1-15. But this is what the FCC wants to do.

 

I guess the FCC doesn't mind channels sharing the same frequency or moving back to the problematic VHF band, even if they try to boost power on the VHF band.

[NewsMaster 226]

 

I saw the paperwork last night. Folks hate seeing Sincrap gobbling stations left and right, as I do. But I really hate these speculators (OTA, NRJ & LocusPoint) with a passion. No TV Channel should go away. They can find other grids, instead of taking TV channels off the grid. Now the stations that's left will be prone to to severe co-channel interference, in-market and in adjacent markets. Many existing LP stations will do bye-bye, many will be gone anyway (the LP analogs) by 9-1-15. But this is what the FCC wants to do.

 

I guess the FCC doesn't mind channels sharing the same frequency or moving back to the problematic VHF band, even if they try to boost power on the VHF band.

 

I do too. I am especially angry that this station has the only halfway-decent newscast in Jersey, and for it to go away would take away a voice that needs to be heard.

[Samantha 2896]

What sort of value would WMGM itself have if it weren't for the fact that it happens to take up spectrum in the nation's fourth-largest TV market where the spectrum is a jungle?

[TVIntheDesert 183]

If it were a low-rated independent station wasting away on home shopping or other low-budget programming, I can see the justification for these speculators buying a station. But, now that OTA and LocusPoint have stepped into a whole new territory (network affiliates), that raises major issues. I don't think the broadband-industry lackey now running the FCC is going to stop it.

[GoldenShine9 1513]

The only positive I can see is that with an absentee owner, the local management can basically run it like an independent with no control...

[sanewsguy 511]

 

The only positive I can see is that with an absentee owner, the local management can basically run it like an independent with no control...

 

That's basically how it's run now...

[mountainave 606]

Just to clarify (sorry, not familiar with station buying/selling), is NBC 40 remaining but under a new owner, or is the new owner shutting it down?

[CircleSeven 1955]

 

Just to clarify (sorry, not familiar with station buying/selling), is NBC 40 remaining but under a new owner, or is the new owner shutting it down?

 

When the new ownership comes, NBC 40 will still be operating as usual. But no tell what will happpen after the spectrum auctions. More likely that it will go away afterwards. But its a point of when, actually. It might not be immediately after the auctions. We just have to see. Just like KVOS, WLWC & KMIR and the countless others that NRJ, OTA & LocusPoint, and the others going to the speculators.

[Samantha 2896]

 

Just to clarify (sorry, not familiar with station buying/selling), is NBC 40 remaining but under a new owner, or is the new owner shutting it down?

 

The fate of the station is probably now tied to the spectrum incentive auctions in 2014, in which broadcasters could give up their stations for money. Because WMGM occupies spectrum in Philadelphia, a major metro area which is tight on wireless space, it is probably going to command more money for the 6 MHz it occupies.

 

Spectrum speculators have been operating by buying stations on the fringes of major markets for cheap—and we're not always talking DMAs in this regard. Station acquisitions in Palm Springs (Los Angeles), Bellingham, WA (Seattle) and Providence, RI (Boston) are intended to allow the speculators to command major-market prices for valuable spectrum. This article from current.org (which focuses on public media) may be helpful in explaining this.

 

LocusPoint is owned by The Blackstone Group, a private equity firm.

[broadcastfan9751 140]

The Press of Atlantic City reports that Access.1 will continue to manage WMGM after the sale.

[CircleSeven 1955]

 

The Press of Atlantic City reports that Access.1 will continue to manage WMGM after the sale.

 

They're still fools for selling its license to those speculators.... :angry: :bang:

 

I said this before, and I'll say it again. Any broadcaster takes part of those incentive spectrum auctions, and give up their spectrum so the FCC can give it to those wireless carriers, should never broadcast anything ever again. OTA, cable, internet stream or anything else.

[Rusty Muck 4378]

If Sen. Frank Lautenberg were still alive, does this sale even get considered?

[ElliotJones 52]

 

Because WMGM occupies spectrum in Philadelphia, a major metro area which is tight on wireless space, it is probably going to command more money for the 6 MHz it occupies.

 

I understand what you're saying, but does the fact that WMGM's coverage area is 80ish miles away change that? Aside from Atlantic City and it's suburbs, there's a LOT of rural area in that region.

 

I'm not terribly educated on this stuff, so pardon my ignorance.

[Samantha 2896]

 

I understand what you're saying, but does the fact that WMGM's coverage area is 80ish miles away change that? Aside from Atlantic City and it's suburbs, there's a LOT of rural area in that region.

 

I'm not terribly educated on this stuff, so pardon my ignorance.

 

Nope. Spectrum speculators' needs are very different.

 

Consider some of the other spectrum speculator acquisitions lately: KVOS (Bellingham/Seattle), KMIR (Palm Springs/Los Angeles), WLWC (Providence/Boston) and now WMGM (Atlantic City/Philadelphia). Not even being in a different DMA matters to the speculators because they're close enough. Think about it. WLWC's presence in the Providence market, for instance, prevents the use of RF channel 22 in the Boston area. Because of that, these fringe stations still have value to major markets which have far less open spectrum.

[sanewsguy 511]

1. Could this be why Access.1 decided to sell?

The reorganization of Access.1 was set in motion upon the death of majority owner Sydney L. Small 12/20/10. Anthony J. Small became administrator of his estate, and is transferring shares to A.1 Holdco, which will be controlled by A.1 Investco, which in turn is controlled by Todd Boehly. It will have a 52.34% majority stake in the newly organized company.

http://rbr.com/access-1-restructure-puts-two-fms-on-the-block/

 

2. What happens to WMGM-LP 7? Was it included in the sale to LocusPoint? Seems no one made any mention about that station and what the future might hold for it. Maybe WMGM just moves to LP after the incentive auctions?

[Samantha 2896]

 

1. Could this be why Access.1 decided to sell?

http://rbr.com/access-1-restructure-puts-two-fms-on-the-block/

 

2. What happens to WMGM-LP 7? Was it included in the sale to LocusPoint? Seems no one made any mention about that station and what the future might hold for it. Maybe WMGM just moves to LP after the incentive auctions?

 

That's a good find.

 

In regard to WMGM-LP, not sure. It apparently just secured a CP last month to go digital as WMGM-LD on RF channel 10. It also appears to have filed a silent STA back in June.

 

I think you might be right on the moving to LP thing. The LP covers Atlantic City, which is definitely part of the target submarket of the station.

[sanewsguy 511]

I don't know who's behind this, but here's a website to try to save the station:

http://www.savenbc40.com/

 

 

For the last 45 years, NBC 40 has been South Jersey's sole local television news and information outlet. But NBC 40 is going off the air.

 

And it's not our choice.

 

NBC 40 owner, Access.1 Communications, has signed a deal to sell the station to LocusPoint Networks, and they have applied to the FCC for approval of the sale. To put it bluntly, LocusPoint Networks (LPN) is a spectrum speculator. They are NOT a broadcaster. They want NBC 40's TV channel for an FCC auction where it could be sold to the highest bidder, who would in turn use the channel's allotted frequency space for expansion of various wireless services: cell phones and other wireless devices.

 

NBC 40: SOUTH JERSEY'S LIFELINE DURING EMERGENCIES Look back no further than a year ago: As Superstorm Sandy took aim at South Jersey, then roared ashore, NBC 40 was there for you.

 

Chief Meteorologist Dan Skeldon and his team - South Jersey's own meteorologists - tracked the storm and kept you up to date on its progress. News anchors Michelle Dawn Mooney, Jennifer Husko, and Jeff Whittaker relayed vital information that helped us stay safe under Sandy's punishing force. And when the superstorm had passed, NBC 40 was there for you, helping get South Jersey back on its feet and documenting the recovery every step of the way. As we reported just a few days ago in our Sandy anniversary special, there's still a lot of work to do.

 

There's a line in the station jingle, "...You don't live in Philly and neither do we..." Over the years, our devotion to coverage of local scholastic sports in South Jersey, from Atlantic to Cape May and Cumberland Counties, has had no equal. Sports Director Pete Thompson and his Sports team fan out every week to keep viewers up to date on their favorite school's sporting events-not just football and basketball, but field hockey, soccer, lacrosse, and the rest.

 

WE NEED YOUR HELP TO SAVE NBC 40 We need you to convince Access.1 (and the FCC) that if NBC 40 must be sold, to find a buyer who will pledge to keep South Jersey's life-saving voice on the air, provide much-needed improvements to its facilities, and SAVE (or add) jobs.

 

No exact date for the auction has been set, but it's expected to happen within the next 12 months (by mid-2014). And if and when that happens, NBC 40 goes DARK, with 60-plus jobs lost, and South Jersey loses its life-saving outlet.

 

Contact your local state senator and assemblyman, mayor or county executive! Call on Congressman LoBiondo, and Senators Menendez and Booker and tell them you want their help to save NBC 40. Contact Gov. Chris Christie too. Let them all know that you don't want to lose New Jersey's ONLY full-power-major-network-affiliated televison station and South Jersey's life-saving outlet.

[Samantha 2896]

I would actually reply to them and say that I see WMGM going LP only. They just secured that CP last month, so the timing definitely seems to be related.

[Samantha 2896]

Break out your violins and requiems, it looks like WMGM really is gone when its NBC affiliation runs out on December 31, 2014:

 

"While the new owners said they would continue to operate the station as an independent, sources tell FTVLive that the staff has been told will go dark on December 31."

[LTSC1980 112]

 

Break out your violins and requiems, it looks like WMGM really is gone when its NBC affiliation runs out on December 31, 2014:

 

"While the new owners said they would continue to operate the station as an independent, sources tell FTVLive that the staff has been told will go dark on December 31."

 

 

Long story short, everybody lost.

[mvcg66b3r 100]

I think this may have something to do with it:

 

Trump Plaza closes, making it official: A third of Atlantic City’s casinos have closed this year

http://www.washingtonpost.com/news/post-nation/wp/2014/09/16/trump-plaza-closes-making-it-official-a-third-of-atlantic-citys-casinos-have-closed-this-year/

[Samantha 2896]

 

I think this may have something to do with it:

 

Trump Plaza closes, making it official: A third of Atlantic City’s casinos have closed this year

http://www.washingtonpost.com/news/post-nation/wp/2014/09/16/trump-plaza-closes-making-it-official-a-third-of-atlantic-citys-casinos-have-closed-this-year/

 

You make a really good point that I think is very easy to lose here.

 

From a television M&A perspective the sale of WMGM is about securing spectrum between New York and Philadelphia. But from an economic perspective, Access.1 likely sold out because the regional market economy of Atlantic City (and South Jersey as a whole) was flagging even in 2013. Now it looks downright Rust Belt.

 

Operating WMGM as a stopgap independent (until auction time), even with nothing but paid programming, is a hard sell because I do not believe WMGM has ever been carried in the rest of the Philadelphia market.

[Mrknowitall526 115]

 

You make a really good point that I think is very easy to lose here.

 

From a television M&A perspective the sale of WMGM is about securing spectrum between New York and Philadelphia. But from an economic perspective, Access.1 likely sold out because the regional market economy of Atlantic City (and South Jersey as a whole) was flagging even in 2013. Now it looks downright Rust Belt.

 

Operating WMGM as a stopgap independent (until auction time), even with nothing but paid programming, is a hard sell because I do not believe WMGM has ever been carried in the rest of the Philadelphia market.

 

Although the Revel casino that just closed is being reopened as a casino again, but yes, the market economy is tanking.

 

I never even heard of WMGM until I got Directv - it was never carried on any cable channel here in the Lehigh Valley, be it RCN, Service Electric, or Blue Ridge.

 

It's said that they will lose a local news outlet - this is discussed in another thread somewhere but it's one of those areas that's really overlooked by the Philly stations - much like the Lehigh Valley, but thankfully we have 69 News and WFMZ.

[newsbot 271]

 

Break out your violins and requiems, it looks like WMGM really is gone when its NBC affiliation runs out on December 31, 2014:

 

And yet they're continuing to sell memberships

http://www.nbc40.net/category/284214/friends-of-40-membership