ABS-CBN [ABS 7.34 5.3%; 771% avgVol] and Prime Media [PRIM 2.69 6.3%; 735% avgVol] [link] revealed that the two media companies have signed a joint venture agreement (JV) for the purpose of “developing, producing, and financing content, programs, and shows for distribution by other broadcast networks, channels, or platforms, locally and internationally”.
The JV will be formed with an initial authorized capital of P100 million divided into 100 million shares at P1/share. Out of the initial P40 million in paid-up capital, PRIM will own 51% of the JV, and ABS will own the remaining 49%.
ABS is owned by the Lopez Family, and has been searching for new arrangements to monetize its vast catalog of content. PRIM is owned by Martin Romualdez, the current Speaker of the House of Representatives, and is the cousin of President Marcos.
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As I mentioned on Twitter, something tells me that the House of Representatives is not going to be falling all over itself to oppose ABS’s attempt to make a media partnership deal this time around. Maybe Mr. Romualdez’s political connections, being the Speaker of the House, will help him and PRIM avoid TV5’s fate.
Something tells me that this deal might be different. As for the partnership itself, there isn’t much information to go on, and only the vague feeling that something like this was the endgame all along.
Would it be worse if the JV were cut with Manny Villar to spew content on ALLTV? It’s hard to say without knowing more about the details.
ABS’s business model requires ABS to get some cut of ad revenues to survive, so if this deal doesn’t include some cut of ads it will be interesting to know how they’re splitting the spoils, and if the deal will move the needle on ABS’s attempts to reach break-even.
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