Manila, Philippines – ABS-CBN and TV5, two of the media giants in the country, have reached a new partnership deal where ABS-CBN has acquired shares from TV5, which is majorly owned by MediaQuest.
According to a joint statement, ABS-CBN Corp will acquire 6,459,393 primary (new) common shares in TV5, representing around 34.99% of the total voting and outstanding capital stock of TV5 for PHP2.16b.
The deal also sees MediaQuest, which is owned by the PLDT Beneficial Trust Fund, its stake reduced to 64.79 percent after the deal is finished. ABS-CBN can also acquire additional shares in TV5, which may increase the Kapamilya network’s stake in the Kapatid network to 49.92% after 8 years.
As part of the partnership deal as well, cable and satellite TV subsidiaries of ABS-CBN and PLDT also entered into a similar deal. Cignal Cable Corp, under MediaQuest, said it was acquiring 38.88% of Sky Cable Corp, under ABS-CBN, for PHP2.862b.
“The investment of Sky Cable by Cignal Cable is expected to benefit the former’s existing customer base consisting of over 300,000 cable subscribers and close to 350,000 broadband subscribers as of the end of June 2022,” MediaQuest said.
The company also added, “The proceeds of the sale of the Sale Shares, the Convertible Note and the issuance of the Debt Instrument in the total amount of PHP7.5b will be used to repay certain obligations of ABS-CBN and Sky Vision and to fund the investment of ABS-CBN in TV5.”
ABS-CBN Chairman Mark L. Lopez said the partnership was an opportunity to help TV5 grow, strengthen its free to air network, and take it to the next level.
“For ABS, it presents a fantastic platform for us to achieve synergies in production content and talent management as well as maximizing our content delivery. We look forward to be of greater service to the public as we come together in taking TV5 to the next level,” Lopez said.
Meanwhile, Manny Pangilinan, chairman at MediaQuest, commented, “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.”
Last year, the ABS-CBN network began showing popular primetime programs of ABS-CBN such as ‘FPJ’s Ang Probinsyano’ as well as the long-running variety show ‘ASAP Natin ‘To’ on TV5.