PLDT to focus on TV5 after botched talks with GMA 7

MANILA, Philippines - Dominant carrier Philippine Long Distance Telephone Co. (PLDT) vowed to infuse more money to boost the operations of Associated Broadcasting Co. (TV5) after another botched attempt to take over broadcast giant GMA Network Inc. (GMA7).

After speaking during the 50th anniversary celebration of the Alpha Sigma fraternity of the University of the Philippines, PLDT chairman Manuel V. Pangilinan said the provider of telecommunication services through Mediaquest Holdings Inc. would now focus on improving the operations of TV5.

 “We will put in more money,” he said but refusing to give details.

 “Our focus now is to make TV5 a viable competitor,” the PLDT chief added.

In October of 2009, PLDT’s Mediaquest acquired the 70-percent stake of MPB Primedia Inc. partly-owned by Media Prima Berhad of Malaysia. The takeover was announced by Pangilinan himself March of the following year.

Among its assets are the broadcast television networks TV5 and AksyonTV, sports network blocktimer AKTV, and the radio network Radyo5 92.3 News FM as well as the satellite television channels Colours, Hyper and Weather Information Network.

Last Oct. 4, PLDT and GMA7 announced the termination of recent discussions with respect to a possible acquisition of a controlling interest in GMA by MediaQuest and its affiliate with the PLDT Group.

 “The parties have been unable to arrive at mutually accepted terms despite the continual discussions and efforts exerted in good faith,” GMA and PLDT stated in the joint statement.

The PLDT Group through MediaQuest has expressed interest in acquiring the 79-percent stake covering both preferred and common shares owned by the families of Duavit, Gozon, and Jimenez in GMA with a market value of about P48 billion.

This was the second time the Pangilinan group has tried to acquire the broadcasting company after the deal entered into in the early 2000 was aborted by the buyer for unknown reason.

Pangilinan reiterated that price has nothing to do with the botched talks but the sharing of the risks in case legislators block the deal due to monopoly issues.

 “It is not about the price,” he clarified.

In statement immediately after the termination of the talks with GMA7, Pangilinan said the company would continue to evolve into a full pledged multimedia service provider from a traditional telecommunications company.

He pointed out that the PLDT Group through MediaQuest Holdings Inc. would continue to pursue multiple platforms with the successful investment in TV5 and Cignal TV.

 “The PLDT Group continues to believe that owning, producing and providing content across multiple platforms is an important component of its blueprint for growth,” he stressed.

As such, Pangilinan said, PLDT would pursue its media strategy by building on Mediaquest’s current investments in TV 5 — the country’s third largest free-to-air television network by audience share and Cignal TV — the leading provider of direct-to-home satellite television services.