PLDT likely to pursue multimedia investments, says Moody's

Posted at 03/06/14 8:33 PM

MANILA – Moody’s Investors Service believes that Philippine Long Distance Telephone Co. (PLDT) will continue to pursue investments in multimedia, but warned that the dominant carrier should only go after large investments.

“PLDT is likely to continue to seek investment opportunities in the multimedia sector to strengthen its ability to deliver multimedia content through its broadband and mobile networks,” Moody’s said.
“Moody's views that unless PLDT moves towards large debt-funded acquisitions of major companies, the near-term credit impact of its investments in the multimedia sector will be immaterial,” the ratings agency added.

PLDT President Napoleon Nazareno earlier said the PLDT Group is pursuing multimedia initiatives through PLDT, Smart Communications, Sun Cellular, and Cignal TV.

On Tuesday, PLDT chairman Manuel V. Pangilinan said acquisition talks with GMA Network Inc. collapsed anew after its offer to buy a minority stake in the company expired in February.

“Our offer expired already. It expired in the first week of February,” Pangilinan said.

He added that the PLDT Group has yet to decide if it will revive talks to acquire the broadcasting company, which it had tried to acquire several times before.

“Well, we don’t know. I am getting tired,” Pangilinan said.