ABS-CBN Corp.’s shares stay below P9 as the network recovers from its terminated TV5 investment deal - TrueID

ABS-CBN Corp.’s shares stay below P9 as the network recovers from its terminated TV5 investment deal

LionhearTVSeptember 15, 2022

After the termination of its investment deal with the broadcasting player TV5–the embattled media giant ABS-CBN’s outlook remains murky.

ABS-CBN Corporation already showed slight progress in the stock market, with a positive share growth in the past two trading days. It may take a while before its stocks reach the surprising high they had last month when both media entities announced their plan to pull off a massive joint venture. 

ABS-CBN Corporation had its shares hit a 6-month high of more than Php13 a piece. It also posted notably a historic volume of stocks traded in a single trading day.

Following its announcement of the deal’s termination, however, the share prices of ABS-CBN Corporation plunged deep below Php10.00 and sunk further to Php8. The sudden swelling of the volume of stocks traded under ABS-CBN Corporation also suggested many shareholders sold shares in anticipation of a further slide in its stock prices.

The company’s stock price has begun improving, however, yesterday, September 14, ABS-CBN Corp closed at Php8.94 per share, which is 2.76% higher than the previous trading day. Be that as it may, it is still nearly 30% lower than the figure posted a month earlier.

ABS-CBN’s terminated deal with Manny V. Pangilinan’s MediaQuest Holdings and TV5 pre-positioned ABS-CBN to own 35% of TV5’s stake, allowing the now franchise-less media giant to institute several programming changes on the free TV network. It would have also entitled Pangilinan’s Cignal Corporation to a 38% stake in ABS-CBN’s Sky Cable Corp. Both deals had a multi-billion price tag.

Despite the cancellation of the investment deal, ABS-CBN’s block time agreement with TV5 remains in tack. The now-content provider also has similar deal with Zoe Broadcasting Network Inc’s A2Z Channel 11.

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