Broadcast media giant ABS-CBN Corp. will be associating with a subsidiary of the holding business held by House Speaker Martin Romualdez, Prime Media Holdings Inc., following the announcement that TeleRadyo will cease its operation by June 30 due to financial difficulties.
The joint venture will be established with an initial paid-up capital of P40 million, of which Prime Media Holdings Inc. will contribute 51 percent and ABS-CBN will own 49 percent.
According to ABS-CBN, it will enter a new venture with Prime Media, intending to look for ways to continuously provide news to the public, explaining that the new company will produce programs that will supply broadcasters and other third-party platforms, including Philippine Collective Media Corp.
&nbsp;In the aforementioned strategic alliance, an initial capital stock of P100 million will be merged, consisting of 100 million common shares with a par value of P1 each.
Furthermore, with the initial capital stock, former workers will be given the opportunity to find new jobs, allowing the company to continue giving truthful and fair news and information to the public.
Moreover, nine members of the board of directors will lead the joint venture; five of them will be chosen by Prime Media, and the other four will be assigned by ABS-CBN.
The project will also provide job opportunities for TeleRadyo employees who have been laid off.
ABS-CBN's agreement with Prime Media offers it an extra revenue stream through equity investment and participation in joint venture projects.
Meanwhile, the network is attempting to recover business after losing money throughout the COVID-19 outbreak.

Prime Media is a subsidiary of Romualdez's holding company, RYM Business Management Corp.

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ABS-CBN to associate with Romualdez-owned firm