ABS-CBN, TV5 to ‘pause’ investment deals

MEDIA giants ABS-CBN and TV5 have come up with an agreement to “pause” their investment deals following the concerns aired by lawmakers over their partnership.

“To address the issues which have been raised by certain legislators and the National Telecommunications Commission on the proposed investment by ABS-CBN for a minority interest in TV5, ABS-CBN and TV5 have agreed to a pause in their closing preparations,” ABS-CBN said in a statement.

“This pause will give the space for both media organizations to respond to the issues, and accommodate any relevant changes to the terms,” it added.

The firm, however, maintained that an agreement between the two media companies will have a “favorable impact” on the country’s media industry, especially on free-toair television, “which remains the most affordable and extensive source of entertainment and public service to Filipinos.”

Earlier, ABS-CBN Corp. and TV5 Network Inc. announced the execution of an Investment Agreement that will allow ABSCBN to acquire 6,459,393 primary (new) common shares in TV5 representing 34.99 percent of the total voting and outstanding capital stock of TV5 for a total subscription price of P2.16 billion.

This will result in the airing of ABS-CBN shows under TV5.

ABS-CBN, one of the major television stations in the country, went off-air on free TV in May 2020 after the House of Representatives rejected its bid for franchise renewal due to various violations, including alleged non-payment of the right taxes.

It has then entered into block time deals with other media networks such as Zoe Broadcasting Network and TV5 to enable some of its shows to return to free TV.

Currently, three resolutions in the House of Representatives seek the conduct of a probe into the firms’ partnership.

Among the issues raised were the ownership of TV5 as well as the block time agreement, particularly of the ABSCBN’s national news program TV Patrol.

Sagip Party-list Representative Rodante Marcoleta, one of the 70 representatives who voted against ABS-CBN’s renewal of franchise, said TV5 has violated its franchise by entering into a deal with ABS-CBN.

He also floated the idea that TV5 is owned by an Indonesian national.