ABS-CBN, MediaQuest seal new investment deals

After months of speculation, the investment deals between Kapamilya and Kapatid camps have been sealed.

On Wednesday, August 10, 2022, executives of MediaQuest and its parent firm PLDT, including its chairman Manny V. Pangilinan, met with the bigwigs from the Lopez-backed ABS-CBN Corporation, led by ABS chair Mark Lopez and president Carlo Katigbak. In a signing ceremony at TV5 Media Center in Mandaluyong, both camps formally welcomed their entrance to the businesses of one another.

Foremost, ABS-CBN Corporation, owner of ABS-CBN, and MediaQuest Holdings signed an investment agreement that will see ABS acquire more than 6.4 million primary common shares worth Php 2.16 billion in TV5, which amounts to 34.99% of the company. After 8 years, ABS-CBN can invoke to acquire about 15% more of TV5 Network and eventually own no more than 49.92% of the company.

In the programming side of things, Pangilinan says that the entertainment, sports, and news and public affairs teams of both will “combine in some shape or another” in the future. However, he clarified that discussions are still being held for the news category, given that both ABS and 5 have their respective news departments.

Currently, only entertainment shows from ABS-CBN are being aired on TV5, most notably on noontime and primetime. Meanwhile, select ABS-CBN News shows air on Zoe TV’s A2Z channel, which ABS-CBN will continue to lease airtime from despite the deal. On the other way around, TV5/Cignal has also begun airing entertainment shows like Sing Galing and Top Class on ABS-CBN’s international channel TFC.

In a different, but related deal, Cignal Cable, another MediaQuest company, will have a 38% stake worth Php 2.8 billion in ABS-CBN’s pay TV and broadband asset, Sky Cable. Through this, ABS-CBN cable channels, as well as Cignal’s exclusive channels will soon be seen by subscribers of both Sky and Cignal. But after 8 years, should this deal pass regulatory approvals, Cignal Cable is allowed to acquire more shares in Sky and own no more than 61.12% of shares in the company.

Speaking to The Big Story on One News, MediaQuest President and CEO Jane J. Basas says that while the deal has been signed, it will take a few weeks before the transaction is completed. Basas also notes that transition and other plans will only commence once everything is final, but shares that regional stations, strengthening of entertainment shows, among other areas of the business, are being explored.

She also clarified that ABS-CBN and TV5 will remain distinct entities, and MediaQuest will still compete with ABS in areas wherever possible, such as digital/online.

The National Telecommunications Commission has since said that they will look into alleged “violations” committed by ABS-CBN, despite being cleared by various agencies at the height of the franchise renewal controversy in 2020.

The Philippine Competition Commission, meanwhile, does not require both parties to undergo review given that the Bayanihan 2 act has increased the threshold to Php 50 billion for M&As. But, the PCC said, they still encourage both parties to voluntarily undergo PCC review. The PCC also said that they will also make an “initial assessment” on the impact of both TV5-ABS-CBN and Cignal-Sky deals.