ABS-CBN, TV5 ‘Mutually’ Discontinues Network Investment

By: Thea Divina
September 01, 2022
860

Media networks ABS-CBN and TV 5, announced on  September 1, 2022 that they will no longer continue their Php 4 billion deal of Sale and Purchase Agreement dated August 10 that would have allowed ABS-CBN to telecast their shows and programs on TV5..

The lost investment deal would have given ABS-CBN Php 6.45 million new primary shares or 34.99% of TV5’s capital stock.

The relative deal under the "Debt Instruments Agreement'' between Cignal and Sky Cable, which was tied to ABS-CBN and TV5’s arrangement, was also pulled back via a memorandum agreement. The would-be investment between Cignal and SkyCable could have given the former network a 61.1% portion of Sky Cable.

The dead-end deal between the two networks was caused by the pressures and intervention of state regulators and lawmakers.

Anti-ABS CBN franchise SAGIP Party-list Rep. Rodante Marcolate was the one who previously pushed for an investigation on the network engagement for possible violation of terms in the TV5 airing franchise.

The memorandum ordered by the National Telecommunications Commission on August 11, which prohibits a business association between official franchise grantees (TV5) and parties “that have outstanding obligations to the national and local governments” (ABS-CBN), was also a pressure point that led to a discontinued deal. 

The information was disclosed earlier today to the Philippine Stock Exchange and the Securities Exchange Commission

Both networks have made their separate statements on the matter, saying that they ‘mutually’ agreed on the termination of their investment.

“The termination was formalized through a Memorandum of Agreement. The Parties confirm that they have not implemented any of the transactions covered by the Sale and Purchase Agreement and the Debt Instruments Agreement.” ABS-CBN said in their statement.

Since the shutdown of ABS-CBN in 2020, the media company has struggled to continue its operations but managed to adapt its content to social media (Facebook Live, Youtube, and other streaming platforms). 

Amidst the high time of the COVID-19 pandemic, around 11,000 employees were laid off, losing their livelihood after the network went off the air.

 

Comments