PLDT unit takes control of ABC-5

MANILA, Philippines - After a botched deal a few years back to enter the broadcasting industry via a stake in GMA Network Inc., Philippine Long Distance Telephone Co. (PLDT) media arm Mediaquest has finally fulfilled a long-time dream to own a television station with the acquisition of a 75 percent controlling interest in ABC Development Corp. (ABC-5), owner and operator of broadcasting company ABC TV5.

Mediaquest is wholly owned by the PLDT Beneficial Trust Fund, the fund entity which is, in turn, also owned by PLDT. Mediaquest is also the major media and content partner for PLDT and Smart Communications.

PLDT Beneficial Trust Fund vice-chairman and Mediaquest director Ray Espinosa told The STAR that the 75 percent stake in ABC-5 will be paid in cash but did not disclose the amount, saying the owner is a private individual and therefore there is no duty to disclose.

But Espinosa said Mediaquest is also in talks with the owner of the remaining 25 percent stake in ABC-5. The owner of the 25 percent interest is different from the owner of the 75 percent already acquired by Mediaquest, he added.

Mediaquest has also reached an agreement to purchase Primedia, a local corporation engaged in developing programming content for television and marketing of airtime, specifically for TV5. The acquisition of Primedia is expected to be completed within the month.

Sources said the 75 percent stake acquired by Mediaquest in ABC-5 is owned by businessman Antonio ‘Tonyboy’ Cojuangco, although his shares are not listed under his name, but rather under different nominees.

Mediaquest officials said the investments in ABC-5 and Primedia are 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 last July.

They added that by investing in both ABC 5 and Primedia, 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.

They noted that over the past year, TV5 has significantly increased its viewership ratings and has established its position as a strong number three in the country’s Philippine television industry. This, they said, is evidenced by the rise of its shows, “Talentadong Pilipino” and “Who Wants to be a Millionaire” as the top rating programs for primetime weekends.

The local broadcasting industry is currently dominated by ABS-CBN Broadcasting Corp. and GMA Network Inc.

Company officials said the partnership of Mediaquest with PLDT and Smart allows the development of new convergent services through the fusing of telecommunications services with rich multi-media content, which include the recent launch of PLDT’s WatchPad and Smart’s Sandbox.

They stressed that Mediaquest’s entry into free TV broadcasting will further broaden and strengthen this collaboration with the PLDT Group.

Primedia is a major blocktimer of TV5 since March 2008 and was in charge of producing and sourcing most of the entertainment shows, while ABC 5 remained responsible for news programming and station operation.

Primedia is part of the overseas portfolio of Malaysian media giant, Media Prime, which is listed in Bursa Malaysia, formerly the Kuala Lumpur Stock Exchange.

The Philippine deal was part of the Malaysian conglomerate’s efforts then to scour for opportunities abroad through an investment vehicle minority owned by Media Prime that other investors could also join. But the global financial crisis happened and financing dried up.

MediaQuest has been the corporate vehicle for the PLDT Group’s various media-related ventures. Its portfolio includes a 30 percent stake in the business paper BusinessWorld; a controlling interest in National Broadcasting Corp. (NBC), which operates a network of radio and TV stations, and; a minority interest in cable TV company Sky Cable, and a controlling stake in 360media, which has a direct-to-user license that permits it to broadcast via satellite and terrestrial wireless transmission mobile TV and direct-to-home services.