ABS-CBN, TV5 Sign Multi-Billion Peso Joint Venture

Philippine media giants ABS-CBN and TV5 have officially signed a multi-billion peso agreement to consolidate both networks’ contents and resources after negotiating for more than a year.

This comes as ABS-CBN made the announcement in a statement to the Philippine Stock Exchange on Thursday, August 11, of acquiring nearly 6,459,393 primary common shares of TV5.

This represents 34.99 percent of the total voting rights and share capital. in circulation of TV5 for PHP2.16 billion.

The move effectively reduces the equity of TV5 operator and owner MediaQuest to 64.79 percent of the total voting rights and share capital.

However, MediaQuest still prevails as the majority shareholder of TV5.

Moreover, the two media giants also entered a convertible note agreement in which ABS-CBN invests in a convertible note with a value of PHP1.84 billion, which will be issued by TV5. This will allow ABS-CBN with the option to acquire additional shares of TV5 after 8 years from the issuance of the Convertible Note, with the acquisition of shares not exceeding 49.92 percent.

The agreement will significantly enhance the capability of TV5 to deliver entertainment, news, sports, and public services content and coverage that will reach even remote areas.

The agreement is expected to be completed within August 2022.

Mediaquest Holdings Chairman Manuel V. Pangilinan welcomed the deal, saying it would provide better service to the Filipino people.

“We welcome the entry and investment of ABS-CBN in TV5, as 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,” Pangilinan said.

ABS-CBN Chairman Mark Lopez echoed Pangilinan’s statement, saying that it presents ABS-CBN with the platform for maximizing content delivery and service to the public.

“We are excited with this partnership as we see the opportunity to help TV5 grow and strengthen its free-to-air network. 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.

ABS-CBN was denied a franchise during the latter part of former president Rodrigo Duterte’s administration and during the onset of the COVID-19 pandemic.

ABS-CBN used fixed-term leases to broadcast programs on TV5 prior to the landmark agreement. (GFB)