Despite closer ties, ABS-CBN and TV5 merger out of the question
Media giant ABS-CBN Corp. said there would be no acquisition or sale with rival network TV5 after both companies forged a partnership via a blocktime agreement.
“There are no merger or acquisition plans,” ABS-CBN president and CEO Carlo Katigbak said in response to a query raised by a shareholder during the company’s special stockholders meeting on Tuesday.
Katigbak, however, signaled they were open to expanding their partnership with TV5 and Cignal TV for content. Both of the companies are part of the PLDT Group.
On Jan. 21, ABS-CBN announced a blocktime or airtime leasing deal with TV5, allowing more of its entertainment programs to return to free-to-air TV.
ABS-CBN once operated the country’s largest TV network until President Duterte’s allies in the House of Representatives ended last year its bid for a new 25-year broadcast franchise. Duterte previously threatened to shut down ABS-CBN over unaired political ads during the 2016 elections.
Apart from TV5, ABS-CBN entered into a blocktime partnership with the TV network of Eddie Villanueva, a lawmaker and founder of Jesus is Lord Church.
This allowed ABS-CBN to air shows on A2Z Channel 11 in Metro Manila and nearby provinces. On the other hand, TV5 provides wider reach given its nationwide presence.
Pay cuts
While new bills aiming to grant ABS-CBN a new franchise were filed before Congress, Katigbak said their blocktime partnerships would continue for now.
“We remain committed to our partners who have helped us through this difficult time,” he said on Tuesday.
ABS-CBN held a special stockholders meeting to approve new employee stock purchase and stock grant plans.
A stock purchase plan allows employees to buy the company’s shares at a discount to the prevailing market price.
The loss of its franchise led to heavy financial losses for ABS-CBN and forced the company to lay off nearly 5,000 employees and shutter business divisions. The employees and artists who remained also agreed to voluntary pay cuts.
Katigbak said the stock purchase plan would help the company “retain and motivate” key employees.
“This is also in recognition to our employees who agreed to take a voluntary pay cut,” he said.
