Biz Buzz: Rekindling GMA 7 courtship
Talks about the group of Manuel V. Pangilinan buying out broadcasting giant GMA Network Inc. have been so pervasive that many stock market pundits now believe there’s some truth to it. This all began when MVP was seen in a serious huddle with GMA chair Felipe Gozon at the wake for the latter’s mother in December, which was followed by a Twitter frenzy that erupted in the show-biz world.
What we’ve found out to be true is that MVP has indeed revived his long-running interest in the Kapuso network even if he has started his own Kapatid network. The latest offer reportedly ranges between P45 billion and a little over P50 billion, according to a source close to MVP. This was said to be lower than what was laid on the Kapuso table previously. (GMA 7 has a current market cap of P31 billion plus P8 billion in depository receipts). The source said that part of MVP’s long-term plan was to expand broadcasting coverage and such a consolidation would give MVP 60 percent or a lion’s share of the market, thereby attracting greater advertising revenues. (And with other mega-deals like Philippine Airlines, South Luzon Expressway and Skyway takeover lost to the “frenemy,” MVP certainly has a lot of energy to devote to a bigger broadcasting project.)
But while MVP has made some progress in reaching out to the Kapusos, it’s still uncertain whether a deal could finally be made this time around. There’s a triumvirate controlling the network (Gozon, Jimenez and Duavit) and the three must all consent if any deal is to take place and our sources say one of them remains lukewarm to the latest offer. Everything has a price tag but one of the musketeers still needs convincing, the sources confirm. And by the way, we heard this crown jewel has other suitors, too.—Doris C. Dumlao
Low morale
Despite improving ratings and a growing market share in advertising revenues, morale at Manny Pangilinan’s TV5 is low these days.
This may have something to do with TV5 president and CEO Ray C. Espinosa’s recent revelation of the company’s plans to acquire its bigger rival, GMA Network Inc.
“Kapag pumayag na sila. Nanliligaw pa tayo (If they agree. We are still courting them),” Espinosa reportedly told TV5 employees during a recent, highly confidential general meeting. This confirmed weeks of speculation of the possible merger, which will change the industry landscape. If it pushes through, the merger also means that Pangilinan will end up dominating the country’s media industry much sooner than he expected.
The meeting came after GMA Network chair Felipe Gozon himself said he was willing to sell his substantial stake in the company “at the right price.”
Of course, talks of a merger have TV5 employees, most of them hired just in the last two years, worried for their jobs. As in any merger, job cuts to reduce redundancies are inevitable.—Paolo Montecillo
More on the mining face-off
The much-awaited mining forum jointly organized by the Financial Executives Institute of the Philippines, Management Association of the Philippines and Philippine Chamber of Commerce and Industry this Friday afternoon promises to be a full house with at least 250-300 attendees expected to troop to Hotel Intercon to listen to the pros and cons of mining.
There will be six confirmed presenters from the private sector and civil society groups, each given 15 minutes to argue their case on the pros and cons of mining. But before these presentations, Mines and Geosciences Bureau director Leo Jasareno will share the government’s perspective. The only lady among the presenters, ABS-CBN Foundation managing director Gina Lopez, will speak first, followed by Chamber of Mines director Gerard Brimo, British global conservation and development expert Clive Wicks, Wallace Business Forum chair Peter Wallace, Manila Electric Co. consultant and former Comelec chair Christian Monsod and Philex Mining chair Manuel Pangilinan.
A Q&A session will follow the presentations. Among the panelists will be MAP president Eduardo Francisco, Finex president Ramon Opulencia, PCCI vice chair and Chamber of Mines president Philip Romualdez, MAP climate change and sustainable development committee co-chair Corazon Claudio, MAP vice chair for national issues Baltazar Endriga, Finex environment committee chair Adele Jaucian and Finex national affairs committee chair Eduardo Yap. According to the organizers, the forum is open to the public for a P1,500 fee per head.—Doris C. Dumlao
Paris Hilton’s value added
Whether you love her or hate her, American “it” girl and hotel heiress Paris Hilton certainly brings value to her Philippine project. Sales of the Century Property Group’s nine-tower Azure Urban Resort Residences spiked 40 percent since it was announced (sometime in August last year) that she will design the man-made beach club at this residential project. As such, CPG sold a record-high P13.5 billion worth of units at the Azure project in 2011.
CPG managing director Marco Antonio says that at the end of the day, “it’s not the endorsement but the value-added collaboration redounding to consumer benefit” that matters most.—Doris C. Dumlao
Highway war
If some parties are to be believed, another split within President Aquino’s Cabinet may be emerging and this time, the latest row is supposedly between Transportation and Communications Secretary Manuel “Mar” Roxas II and Public Works and Highways chief Rogelio “Babes” Singson.
The “war,” as one industry executive calls it, stems from the two rivaling proposals for the construction of a new toll road linking the Skyway with the North Luzon Expressway (NLEx).
The first proposal, submitted in late 2010 by businessman Manuel V. Pangilinan’s Metro Pacific Investments Corp. (MPIC), is being backed by Singson, a former employee of the telecom tycoon in Maynilad.
The MPIC proposal is already due for a “Swiss” challenge wherein other interested parties will be given the chance to submit better offers.
Another proposal by MPIC’s corporate rival, San Miguel Corp., was also submitted for the consideration of the Toll Regulatory Board (TRB). Though made up of representatives of different departments, the TRB is still an agency under the administrative supervision of Roxas and the Department of Transportation and Communications.
Roxas, in a recent letter, has asserted that the DoTC, through the TRB, had the sole authority to award toll road contracts in the country, and according to our sources, the Department of Justice has agreed to mediate for the two departments.—Paolo Montecillo
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