Pangilinan bid to acquire GMA 7 falls through

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Manuel V. Pangilinan. INQUIRER FILE PHOTO

MANILA, Philippines—Manuel V. Pangilinan’s bid to acquire a controlling stake in the local broadcasting company GMA Network Inc. has ended in failure.

The Philippine Long Distance Telephone Co. group disclosed to the Philippine Stock Exchange on Thursday that MediaQuest Holdings Inc., a company owned and controlled by the PLDT Retirement Fund, has terminated discussions with the major shareholders of GMA Network.

“The parties have been unable to arrive at mutually acceptable terms despite the continual discussions and efforts exerted in good faith,” the PLDT disclosure said, without discussing what went wrong with the discussions.  A separate disclosure from GMA7 contained the same message.

Pangilinan, who chairs PLDT, said in a separate statement that the termination of the GMA acquisition initiative was “expected to adversely impact the PLDT group’s strategy of evolving from a traditional telecommunications company into a multimedia service company.”

“The PLDT Group continues to believe that owning, producing and providing content across multiple platforms is an important component of its blueprint for growth and as such, intends to pursue its media strategy by building on MediaQuest’s current investments in TV 5, the country’s third largest free-to-air television network by audience share, and Cignal TV, the leading provider of direct-to-home satellite television services,” he added.

Industry sources said the termination had nothing to do with Pangilinan’s recent threat to relocate back to Hong Kong or pull out investments in the Philippines, noting that discussions had hit a stalemate even before that.

The Inquirer’s Biz Buzz reported in early September that after moving close to an acceptable pricing of about P52.5 billion (enterprise value for 100 percent of GMA-7), a potential deal-breaker was the amount of advance payment that sellers wanted Pangilinan’s group to lay on the table ahead of congressional approval to consummate the deal.

Knowing that the deal may encounter rough sailing among regulators, Pangilinan’s group was not willing to shell out a big amount that could be forfeited if regulators opposed the deal.

Last August, GMA7 chair Felipe Gozon told reporters that the discussions with Pangilinan’s group would either terminate or go through within this year. If a deal did not push through, he said, the current owners of GMA7 were “ready, prepared and willing to continue running” the company.

Gozon, for his part, has been at the helm of GMA7 for 12 years.

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  • LJ1200

    Bumama tuloy ang stocks ng GMA dahil dito, malulugi ako. waaaah. :-(

  • Markus M

    There’s always channel 13.

  • sam_aquino

    sa taas ng charges, kinakain na lang ng meralco kita ng lahat ng pilipino…  

  • http://pulse.yahoo.com/_S255VAIM5MHUTMYUGHNF5PTE6Y teddy

    As it looks, ABC5 seems to hold its own against ABS-CBN and GMA with its program line-up and roster of talents. MVP, it seems, just doesn’t want to settle for anything less than the top spot even in local TV broadcasting.

    • http://profile.yahoo.com/G3MWARMIKM4ECZZFGVJS5ZS2GM sheila lourene

      “ABC5 seems to hold its own against ABS-CBN and GMA with its program line-up” …really? hold its own????…really?….thats why their losing billions of pesos because “they hold their own”..

  • gr8_light

    The good thing about this is that GMA will be able to continue enjoy its image of WALANG KINIKILINGAN. Kung nabili ito ni MVP wala na sira na ang image nito na independent. GMA is now the no.1 TV station nationwide, according to AGB Nutam. And sa latest revenue reports ng 3 networks, pinakamalaking kinita (net profit) ay sa GMA. Ang ABS malaki ang ibinagsak ng income nila at ad placements. Search nyo pa sa Google or dito sa Inquirer business. Alam yan ni MVP kaya sobrang gusto nya na mabili ang GMA. GMA is a debt-free company while ABS is full of debt obligations. The stock shares of GMA also went up while ABS went down. Mag-focus na lang sa movies ang ABS, dun sila magaling pero tv-wise, 2nd na lang sila sa GMA.

  • Love God

    Reduce PLDT and Meralco tariff 

  • Kid Kara

    Wow P52+ billion! Why dont you spend it on upgrading your mobile network. You have a rubbish mobile network & services. I bought a smart simcard. My calls were getting disconnected after around 5 minutes into conversation. I couldn’t received incoming calls from international & local locations. I was always encountering network congestions in the afternoon and unable to place any call. I literally threw the smart card into the dust bin and bought a new globe simcard. Now im happy.

  • http://pulse.yahoo.com/_3UAABFPUE5ZKBXOAGLWL6POGWU joel genese

     A

  • http://pulse.yahoo.com/_BL2GYU35SO6HTJUEAUTXS3QFYM George Lapulapu

    at least walang monopoly…

  • http://pulse.yahoo.com/_3UAABFPUE5ZKBXOAGLWL6POGWU joel genese

    ??????????

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