ABS-CBN and TV5 Officially Terminate Partnership Deal

The ABS-CBN and TV5 deal, which was officially announced in August, is no more. This was confirmed via disclosures to the Philippine Stock Exchange and the Securities Exchange Commission and from the networks themselves on Thursday, September 1, 2022. 

The partnership involved ABS-CBN agreeing to spend P2.16 billion to buy a total of 6,459,393 primary common shares in TV5, representing about 34.99 percent ownership. The agreement also involved  Pangilinan's Cignal Cable Corporation acquiring a minority stake of 38.88 percent of ABS-CBN's Sky Cable Corp. for P2.862 billion.

The Manny Pangilinan-owned and-controlled network was projected to make a total of P4 billion in both the sale of the primary common shares and a convertible note deal. It also meant that the network would get ABS-CBN's coveted infrastructure and production expertise.

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Since ABS-CBN's franchise denial in 2020, the network has managed to survive by transitioning into digital spaces and streaming platforms. With the partnership, it would have strengthened its production content, reach, and talent management. 

However, since the partnership had been announced, some government officials raised questions and concerns over the transaction, including members of the Philippine Competition Competition and National Telecommunications Commission. Congressman Rodante Marcoleta, who was instrumental in the denial of the extension of ABS-CBN's broadcasting franchise in 2020, had also suggested that TV5 might have violated its own broadcasting franchise with the said deal.

The cancellation of both deals have now been formalized through a Memorandum of Agreement. The parties also confirmed that they have yet to implement any of the transactions covered by the Investment Agreement and the Convertible Note Agreement.