ABS-CBN Corp. and TV5 Network Inc. said Wednesday they deferred the planned P2.16-billion investment deal amid oppositions from certain lawmakers and the National Telecommunications Commission.
The two broadcast networks said they agreed to “pause their closing preparations” on ABS-CBN’s investment for 35-percent interest in TV5 owned by MediaQuest Holdings Inc. of the Metro Pacific Group “to address the issues which have been raised by certain regulators and NTC.”
The P2.16-billion investment agreement between ABS-CBN and TV5 was supposed to be completed this month, “subject to obtaining applicable regulatory approvals.”
“This pause will give the space for both media organizations to respond to the issues and accommodate any relevant changes to the terms,” ABS-CBN said.
“Both ABS-CBN and TV5 believe that an agreement between the two media companies will have a favorable impact on Philippine media and on free-to-air television—which remains the most affordable and extensive source of entertainment and public service to Filipinos,” ABS-CBN said.
SAGIP Party List Rep. Rodante Marcoleta earlier asked the Philippine Competition Commission and the National Telecommunications Commission to probe the joint venture between ABS-CBN and TV5 to prevent a monopoly or consolidation of market power that would lessen competition in the market.
TV5 chairman Manuel Pangilinan, in a recent interview, denied the allegation of monopoly, saying that the network was still small compared to the other network, referring to GMA Network Inc.
“Maliit pa ang TV5. I don’t know why people [think] it’s a major media organization. Its revenue this year will be I think slightly below P2 billion. We are nowhere near GMA, probably less than 10 percent of their revenue,” he said.
Terry Ridon, convenor of Infrawatch PH, said the transaction between TV5 and ABS-CBN “does not require the prior approval of Congress as this does not involve the sale of controlling shares of TV5 to another entity.”
“Further, it is our view that this transaction is not a competition concern, as both entities are not the dominant players in the broadcast sector,” he said.
Tiron said the transaction would not breach any NTC regulation, as ABS-CBN has more than adequately shown that it has no outstanding obligations in any agency of government.
“The new government should take notice that this transaction is entirely distinct from the franchise proceedings in the previous government, and if it is truly committed to its call for unity among our people, it should step aside and let this transaction proceed and allow all voices to be broadcast, no matter how inconvenient or discordant these voices may be,” Tiron said.
The NTC in 2020 ordered ABS-CBN to stop operations following the expiration of its congressional franchise. Republic Act No. 7966, which granted ABS-CBN a 25-year franchise to operate TV and radio broadcasting stations, expired on May 4, 2020.
The Radio Control Law bars the operation of a radio broadcasting station without a franchise from Congress.