ABS-CBN Purchases 35% Stake of TV5

TV5 Network Inc and ABS-CBN Corp of business tycoon Manuel V. Pangilinan have announced that an investment agreement is predicted to increase the presence of TV5 in the industry and provide the Lopez family a way around its lack of franchise license to have an avenue to air its programs.

ABS-CBN has said it will acquire 6.46 million new common shares of TV5 for ₱2.16 billion which is equivalent to 34.99% of the total outstanding capital stock of TV5.

The agreement is expected to be closed in August and includes ₱1.84 billion worth of convertible notes to be issued to ABS-CBN by TV5. This would also permit ABS-CBN to purchase more stakes to increase its stake in TV5 to 49.92% after eight years.

“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,”  says ABS-CBN

After reports of the potential joint venture were released in June, this partnership has been highly anticipated.

ABS-CBN has been operating without a free TV franchise after it failed to secure a renewal application under the term of former President Rodrigo Duterte.

Last January 2021, ABS-CBN entered into a block time leasing deal with TV5 to allow its shows to be aired through the Pangilinan-led network. ABS-CBN has also begun using digital platforms to stay afloat.

“We welcome the entry and investment of ABS-CBN in TV5, as ABS-CBN has always been the leading developer and provider of Filipino-related entertainment content not only in the Philippines but overseas as well,” said Pangilinan.

Source: Inquirer