The Philippines’ ABS-CBN Corp is acquiring a 34.99% stake in one-time rival TV5 in a landmark Php2.16 billion/US$39-million deal that gives the former broadcast giant a significant foothold back into a free-TV market it once ruled.

The agreement also paves the way for ABS-CBN to increase its stake in TV5 to up to 49.92% for Php1.84 billion/US$33.2 million, subject to regulatory approvals, in eight years.

The deal, expected to be completed this month, reduces MediaQuest group’s equity in TV5 to 64.79% of the voting and outstanding capital stock for now.

MediaQuest will remain the controlling shareholder of TV5.

Following months of speculation over what an alliance between the two may look like, today’s announcement also comes three months after a presidential election outcome that pretty much dashed any remaining hopes that ABS-CBN would be granted a new broadcast franchise of its own.

ABS-CBN’s Sky Cable and MediaQuest’s Cignal have inked a separate alliance that further strengthens ties between the two entities and helps ABS-CBN to fund the TV5 acquisition. (see separate story)

“This transaction is clearly transformational for both companies and is envisaged to significantly enhance TV5's capability to deliver content and coverage to the Filipino public in the areas of entertainment, news, sports and public services,” the companies said today.

Taking a good-for-the-nation line, the companies said TV5’s enhanced ability to serve audiences via the agreement was “consistent with the national policy of expanding the private sector’s role of supporting efficient and reliable public services, which TV5 is expected to provide through its nationwide network to provide increased nationwide coverage, especially in remote areas”.

ABS-CBN president and CEO, Carlo Katigbak, said the partnership was “consistent with the strategic intention of ABS-CBN to evolve into a storytelling company whose goal is to reach as wide an audience as possible”.
   
Related stories:
▶ 5 August 2022: ABS-CBN, TV5 alliance draws near, PLDT boss Manny Pangilinan says
▶ 7 June 2022: ABS-CBN reaffirms pivot; in play for deeper content alliances with anyone/everyone, one-time broadcast great says amid rumours of TV5 talks
▶ 5 November 2020: PLDT head Pangilinan walks away from Philippines’ SkyCable bid; cites anti-trust risks