Broadcast giants ABS-CBN Corp. and TV5 Network Inc. decided to pause their investment deal to address issues raised by lawmakers and the National Telecommunications Commission (NTC).
In a joint statement released on Wednesday, Aug. 24, the two media networks said the pause “will give the space for both media organizations to respond to the issues and accommodate any relevant changes to the terms.”
It added that the partnership agreement will have a favorable impact on Philippine media and free television which “remains the most affordable and extensive source of entertainment and public service to Filipinos.”
Last Aug. 10, the two companies signed an investment agreement wherein ABS-CBN would acquire over 6.46 million primary common shares of TV5 for a Php 2.16 billion aggregate subscription price.
The said deal will allow “Kapamilya” programs to air on the “Kapatid” network.
Following the agreement between the two media firm, SAGIP Party List Representative Rodante Marcoleta called the Philippine Competition Commission (PCC) and NTC to probe the reported “joint venture” of the two.
On Monday, Albay Rep. Edcel Lagman wrote a letter to House Speaker Martin Romualdez expressing his concern about the looming House investigation.
In his letter, he explained that the business deal between TV5 and ABS-CBN Corp. is not a merger and the two will "remain separate and independent juridical entities."
He also pointed out that it is an investment deal whereby ABS-CBN will acquire shares of TV5 and claimed that there is no franchise issue as TV5 renewed its franchise under the Republic Act No. 11320.
