ABS-CBN hands off in new media outfit

The partnership with ABS-CBN is, without a doubt, a great business opportunity. More importantly, it is an ideal example of corporate social responsibility; meant to address information gaps and provide public service

Amid a recently forged joint venture deal, media giant ABS-CBN Corp. will remain independent and uninvolved in the operations of its partner Philippine Collective Media Company or PCMC, the subsidiary of Prime Media Holdings Inc.

In a report to the stock exchange on Monday, Prime Media Holdings Inc. clarified that PCMC is just one of its distribution channels.

“It is an independent organization. ABS-CBN will not be involved in Prime’s or PCMC’s operations. The parties will create a joint venture company,” Prime Media president Manolito Manalo said.

“The partnership with ABS-CBN is, without a doubt, a great business opportunity. More importantly, it is an ideal example of corporate social responsibility; meant to address information gaps and provide public service,” it added.

Exclusive radio airing

Likewise, Manalo reiterated that the joint venture will only focus on “content creation and production not for free TV broadcast.”

“The objective of the JV is to provide accurate and balanced news and information to the country and public service. The content produced by the joint venture will be distributed to radio, cable tv, and other platforms, including the stations under PCMC,” he said.

The deal, as per Prime Media, will be formalized through an initial paid-up capital of P40 million. The company will be a majority shareholder with 51 percent investment, and the remaining 49 percent will be owned by ABS-CBN.

Enhanced share values

Manalo said Prime Media shareholders can expect enhanced shares value through the revenue stream expected to be generated from its equity investment in the joint venture.

Prime Media formalized its foray into broadcasting in July 2021 through a memorandum of understanding where PCMC shareholders agreed to jointly subscribe to 1.6 billion common shares of Prime Media.

Later on, PCMC secured its franchise to operate radio and television stations in the Eastern Visayas during the Arroyo administration through Republic Act 9773.