The embattled media giant took a major nosedive at the stock market on August 31, following the announcement of the termination of its planned investment deal with Manny V. Pangilinan’s MediaQuest Holdings and its TV network, TV5.
After weeks of glaring scrutiny by the House of Representatives under the helm of franchise killer SAGIP party-list representative Rodante Marcoleta, ABS-CBN and TV5 officially abandoned their previously announced investment deal on August 31. The said deal prepositioned ABS-CBN to owning 35% of MediaQuest Holdings’ shares, but the partnership deal officially got terminated, with both media entities announcing the bad news earlier.
The effect of this cancellation is of no-doubt more vividly stark on ABS-CBN, as shares of ABS-CBN Corp took a deep plunge following the announcement. The company closed PhP1.58 lower than the previous trading day, plunging to its lowest in more than two weeks at PhP9.14 apiece.
ABS-CBN Corp revealed the deal cancellation in a disclosure with the Philippine Stock Exchange on early Thursday morning. The deal would have allowed ABS-CBN to buy PhP2.16 billion worth of shares from TV5.
Its cancellation will reflect largely on the growing political pressure from Congress, which is the same entity that barred the Network from getting a fresh 25-year broadcast franchise in July 2020.
A separate investment deal, which previously pre-prepositioned Pangilinan’s Cignal Corp to controlling 38% of ABS-CBN’s Sky Cable, was also terminated.
ABS-CBN, however, is likely to keep its blocktime deal with TV5. Last July, TV5 began airing ABS-CBN’s flagship noontime show, It’s Showtime. ABSC-CBN Entertainment’s scripted primetime dramas also occupy TV5’s 8-11 pm slots.