Philippine media companies ABS-CBN Corp. and TV5 Network Inc. have terminated investment deals that could have helped revive the former broadcast giant’s business. ABS-CBN’s share price fell.
(Bloomberg) — Philippine media companies ABS-CBN Corp.
and TV5 Network Inc. have terminated investment deals that could have helped revive the former broadcast giant’s business. ABS-CBN’s share price fell.
The companies have “mutually agreed” to end an agreement to acquire 35% of TV5, ABS-CBN said in a statement Thursday.
Cignal Cable Corp.’s acquisition of 39% of ABS-CBN unit Sky Cable Corp. was also terminated.
ABS-CBN, whose free-to-air TV and radio stations were ordered shut by government in 2020 after receiving the ire of then president Rodrigo Duterte, said the parties “have not implemented any of the transactions” covered by the agreements.
ABS-CBN shares fell as much as 12% Thursday, while the benchmark stock index was up 0.2%.
Last week and just days after the deal’s announcement, ABS-CBN and TV5 said they are taking “pause” to address issues raised by the telecommunications regulator and some lawmakers.
Philippine Media Giant ABS-CBN’s Revival Hits a Snag (1)
“The regulatory environment is still overwhelmed by political considerations,” said Astro del Castillo, managing director at First Grade Finance Inc.
“But there are other avenues for their partnership. ABS-CBN continues to have programs on TV5.”
ABS-CBN has been airing some of its shows digitally and on some free-to-air networks, including TV5.
Still, ABS-CBN remains unprofitable, reporting a net loss of 1.42 billion pesos ($25 million) in the first half.
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