MANILA, Philippines — Both ABS-CBN and TV5 have temporarily agreed to halt the final preparations for completing their investment deal.
“To address the issues which have been raised by certain legislators and the National Telecommunications Commission on the proposed investment by ABS-CBN for a minority interest in TV5, ABS-CBN and TV5 have agreed to a pause in their closing preparations.”
ABS-CBN said in a statement
“This pause will give the space for both media organizations to respond to the issues and accommodate any relevant changes to the terms,” it added.
On August 11, it was announced that the two media companies had signed a deal to work together. ABS-CBN Corporation will invest Php2.16 billion in this deal to buy 6,459,393 new common shares in TV5. This represents 34.99 of the total voting and outstanding capital stock of TV5. MediaQuest, which owns TV5, will still have 64.79 percent of the voting and outstanding capital stock.
ABS-CBN and TV5 highlighted that both companies believe that an agreement between the two media companies will have a favorable impact on the media in the country, as well as on free-to-air television, which continues to be the most accessible, affordable, and extensive source of entertainment and public service for Filipinos.
“In partnership with TV5, we look forward to reaching viewers both on owned platforms and through other broadcast partners, thereby enriching the Philippine creative industry. We hope the industry evolves from being highly competitive to increasingly collaborative, which benefits all stakeholders in the long run.”
ABS-CBN CEO Carlo Katigbak
MediaQuest Holdings Chairman Manny Pangilinan also expressed his delight with this collaboration.
“ABS-CBN has always been the leading developer and provider of Filipino-related entertainment content not only in the Philippines but overseas as well. Our companies have always had these cherished values of providing top and quality programs in the service of the Filipino people, and together, we believe we can achieve this in greater measure and success.”
MediaQuest Holdings Chairman Manny Pangilinan
Rep. Rodante Marcoleta of the Sagip Party list has previously stated that the business arrangement between the two networks has to be looked into since it leaves a “bad taste in the mouth.”
According to him, ABS-CBN still had to fulfill several obligations with the Bureau of Internal Revenue (BIR) and the National Telecommunications Commission (NTC) over the non-payment of penalties levied against the company due to the encryption of its signals from its TV Plus digital TV boxes.
The NTC has also explained that it is investigating the contract to determine whether or not it violates a recently drafted memorandum that prohibits networks from entering into block time partnerships with companies that have had previous conflicts with government agencies.
Meanwhile, a local think tank named Infrawatch PH has claimed that the deal is not a “franchise issue” and will not make the two networks less competitive with each other. It further emphasized that no transfer of controlling stakes would need congressional permission and advised lawmakers to focus on issues like economic recovery and social initiatives instead.
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