ABS-CBN, TV5 Call Off Landmark Investment Deal

Media giants ABS-CBN Corp. and TV5 Network Inc. have officially terminated their landmark investment deal amid huge political pressure.

This comes after both networks put the deal on hold to address matters amid several issues raised by lawmakers and the National Telecommunications Commission (NTC).

The announcement was made to the Philippine Stock Exchange on Thursday, where ABS-CBN said it agreed with TV5 to “terminate the Investment Agreement dated 10 August 2022 covering the proposed acquisition by ABS-CBN of 34.99% equity interest in TV5 and the Convertible Note Agreement dated 10 August 2022 covering the proposed subscription by ABS-CBN to a Convertible Note to be issued by TV5.”

ABS-CBN added that the termination of the deal was made official “through a Memorandum of Agreement.”

Moreover, both parties have also confirmed that they have not implemented any of the said transactions in the deal.

“The Parties confirmed that they have not implemented any of the transactions covered by the Sale and Purchase Agreement and the Debt Instruments Agreement,” a press release from ABS-CBN read.

Lawmakers also recently set their sights on TV5 after denying ABS-CBN a franchise renewal on May 2020, as Sagip party-list Rep. Rodante Marcoleta, who pushed for the denial of a franchise renewal to ABS-CBN, said that TV5 violated Section 10 of its broadcasting franchise when it entered the landmark deal with ABS-CBN.

“With the substantial purchase of the outstanding stocks of ABS-CBN, I believe Section 10 of the franchise of TV5 was violated because the rights and obligations have virtually been transferred to ABS-CBN,” Marcoleta said in his House of Representative’s privilege speech on August 15.

Marcoleta also added that the deal may lead to a monopoly.

ABS-CBN officially went off the air in May 2020 at the height of the COVID-19 pandemic and during the Enhanced Community Quarantine, as the NTC ordered the media giant to cease operations after the expiry of its legislative franchise.

This led to the retrenchment of thousands of ABS-CBN employees, and the lack of information dissemination in far-flung areas of the country. (GFB)