PLDT Group not buying other broadcast firms
By Lenie Lectura, Business Mirror | 11/05/2009 12:41 AM
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MANILA - Telecom executive Manuel V. Pangilinan has ceased looking for local broadcasting firms that are on the auction block following MediaQuest Holdings Inc.’s purchase of Asso-ciated Broadcasting Co. (ABC). But the chairman of the Philippine Long Distance Telephone Co. (PLDT) said he is interested to enter into similar deals abroad, particularly the television stations owned by First Pacific Co. Ltd. chairman Anthoni Salim.
Pangilinan earlier openly talked about the status of bidding for government-owned Radio Philippines Network (RPN-9) or International Broadcasting Corp. (IBC-13). The broadcast frequency of either Channel 9 or 13 is seen as an important tool to realize the synergies of telecommunications and media.
But shareholders’ consent has been a stumbling block to pursue MediaQuest’s purchase of either RPN-9 or IBC-13. PLDT had also made an attempt to buy 66.67% of GMA network for P8.5 billion in 2001 through MediaQuest, the investee company of the PLDT Beneficial Trust Fund. However, negotiations bogged down after MediaQuest reduced its valuation of GMA to about P12 billion from P14.58 billion.
Pangilinan said MediaQuest would rather concentrate on ABC-5 and Primedia Inc. This is in line with its strategy of developing media, content and production resources to complement its other media assets and platforms such as Cignal, a direct-to-home satellite service launched in July this year.
By investing in both ABC 5 and Primedia, a local corporation engaged in developing programming content for television and marketing of airtime for ABC 5, MediaQuest expects to further enhance TV5’s programming, ratings and sales as well as improve the broadcast network’s coverage and signal strength throughout the country.
“That’s it for now. But after we have made the ABC 5 investment, a number of companies that are into broadcasting approached us, including TV stations owned by Anthoni Salim,” said Pangilinan.
He said MediaQuest is interested to look into the proposal of Salim. “Well, we’ve been talking about it. I told him that we are interested to help him. That’s okay. We can put the two stations together or have MediaQuest invest there,” said Pangilinan.
He also said that the possible tie-up will eventually lead to more jobs for Filipinos. “If we can export our Filipino talent abroad,” Pangilinan added.
MediaQuest’s investments in ABC 5 and Primedia are its fifth and sixth investments. Others include a 30% stake in BusinessWorld Publishing Corp.; 51% interest in Nation Broadcasting Corp. (NBC); and 33.5% in SkyCable Corp. It also acquired in July 2007 licensed DTH firm GV Broadcasting Systems Inc. which later changed its name to MediaScape Inc.
MediaQuest also has pending discussion to purchase 87.5% of The Philippine Star for P4 billion.
The PLDT executive said the ABC 5 and Primedia investments cost less than P5 billion. Part of the deal included the payment of ABC 5’s debts but Pangilinan did not disclose details of the transaction. “We took care of it. The selling party also took care of it apart from the small and modest amount we shelled out,” he said.
ABC 5 owns and operates ABC Channel 5 which is now called TV5. It is the television network of former PLDT chairman Antonio “TonyBoy” Cojuangco.
Pangilinan said Cojuangco will no longer be involved in the operation of ABC 5 having given up his stake. “He already sold his stake.”
A source said Primedia has long wanted to back out from its deal with ABC 5 due to ballooning losses amounting to P20-million monthly owed to poor ratings. Cojuangco later on agreed to sell ABC 5.
Pangilinan could not yet say his plans for ABC 5, particularly on the content that will be aired over the TV station. “That’s part of the work that needs to be done with the management of ABC 5. It requires a lot of work but rather modest and limited. Again, it’s like Meralco. It’s a long-term investment. We can’t be specific in terms of capex,” he said, adding that he already paid a visit to ABC 5 to personally look into the things that needs to be addressed there.
“We were wondering if there’s room for number 3. It seems there is. From our visit, it gave us a sense of what we needed. Its shows are rating,” said Pangilinan.
MediaQuest said ABC 5 has significantly increased its viewership ratings and has established its position as a strong No. 3 in the Philippine television industry. This is evidenced by the rise of its shows, Talentadong Pinoy and the Philippine version of Who Wants to be a Millionaire, as top-rating programs for primetime weekends.
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