By Lance Arevada

In an unprecedented deal for the Philippine media industry, ABS-CBN Corp. and TV5 Network Inc. announced on Thursday, August 11, that they have entered into a landmark "investment agreement" that allows the acquisition of shares in the subsidiaries of the top media companies.

Photo Courtesy of ABS-CBN/TV5

In a joint statement, the country’s top media companies said that this “transformational” deal would significantly enhance TV5’s delivery of content and coverage to Filipino households, given its collaboration with ABS-CBN.

"This is also 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," they added.

Under the investment agreement, ABS-CBN will acquire a 34.99% of stake in the ownership of TV5 for P2.16 billion. MediaQuest group, TV5's controlling shareholder, will reduce its stake from 99.67% to 64.79%.

Furthermore, the two companies will execute a Convertible Note Agreement, allowing ABS-CBN to acquire up to 49.92% of shares or an additional P1.84 billion on TV5 after eight years.

On the other hand, Cignal Cable Corporation, a subsidiary of MediaQuest Holdings headed by tycoon Manny Pangilinan, has also announced that they have invested in ABS-CBN subsidiary Sky Cable Corporation by acquiring 38.88% of shares in the said company for P2.86 billion.

Like the ABS-CBN-TV5 deal, both parties signed a Debt Instrument Agreement that enables Sky Cable to issue an Exchangeable Debt Instrument to allow Cignal to acquire up to 61.12% of its ownership stake amounting to P4.38 billion after eight years.

‘Kapamilya, Kapatid united’

In a statement, ABS-CBN Chairman Mark Lopez said that this deal is an opportunity for his company to help TV5 “grow and strengthen” its network as ABS-CBN is presented with a platform to “achieve synergies” in producing and delivering content.

“We look forward to be of greater service to the public as we come together in taking TV5 to the next level. I am happy and honored to be able to recognize and say what is a matter of fact: ang ating mga Kapatid ay ating Kapamilya," Lopez said.

For ABS-CBN President and CEO Carlo Katigbak, he is looking forward to reaching more viewers through their owned platforms and partners following their deal with TV5.

“This partnership is 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,” Katigbak said.

Meanwhile, MediaQuest Holdings Chairperson Manny Pangilinan expressed that the deal “will raise the level of service” to the public through their content and coverage in the country.

“Our companies have always had these cherished values of providing top and quality programs in the service of the Filipino people and together we believe we can achieve this in greater measure and success," Pangilinan said.

Before the companies reached the said deal, some programs from ABS-CBN were already airing on TV5, such as ‘FPJ’s Ang Probinsyano,’ ‘ASAP Natin ‘To,’ and ‘It’s Showtime,’ which boosted its ratings.

Following the company’s shutdown in 2020, ABS-CBN has been producing content that aired on various networks and platforms online and on television.

Edited by Audrei Jeremy Mendador