State-owned Intercontinental Broadcasting Corp., operator of free-television channel 13, is up for sale for a floor price of P1.977 billion, the Governance Commission for Government Owned and Controlled Corporations said Monday.
GCG said President Benigno Aquino III approved the privatization of IBC 13, after the broadcast company incurred an average annual financial loss of P45.26 million from 2010 to 2014.
IBC studios are located at the 4.1-hectare Broadcast City in Old Balara, Capitol Hills, Diliman, Quezon City.
“The privatization rationalizes the state’s portfolio in the communications sector in view of the overlap with PTV-4, which is already sufficient to address market failures in the private broadcast industry such as providing programs with social value but are not considered profitable,” GCG said.
It also said the decision came in the wake of the recent revitalization of PTV-4 mandated by Republic Act No. 10390, which identified the privatization of IBC-13 as one of the sources of funding for the increase in PTV-4’s capital.
IBC-13 was in financial distress, as it operated at an average net loss of P45.26 million from 2010 to 2014 and received operational subsidies amounting to P23.56 million in 2015, according to GCG.
“The privatization should pave the way for infusion of additional capital to revitalize the network, which will also be able to operate with more flexibility as a private entity,” it said.
The privatization of IBC-13 will be done through public bidding with an estimated floor price of P1.977 billion. A committee composed of representatives from GCG, the Presidential Communications Operations Office and IBC-13 will implement and conduct the process.
IBC-13 started out in 1960 as a private company known as Inter-Island Broadcasting Corp., and was sequestered by the Presidential Commission on Good Government in 1986 as part of the recovery of ill-gotten wealth. It is one of two networks considered as GOCCs aside from Philippine Television Network Inc.
GCG, which was established in 2011 as the central advisory and oversight body for ensuring the active exercise of the state’s ownership rights in GOCCs, has abolished 22 non-performing GOCCs and classified 25 more as inactive or non-operational.
IBC in 2012 signed a deal with property developer Primestate Ventures Inc. to develop Broadcast City over the next six years.