Romualdez-owned firm has 51% stake; TeleRadyo signing off
MANILA, Philippines — Broadcast media giant ABS-CBN Corp. is entering into a joint venture with a subsidiary of the holding company owned by Speaker Martin Romualdez after announcing that it is ceasing operations of TeleRadyo by June 30 due to financial losses.
The joint venture will be instituted with an initial paid-up capital of P40 million, of which Prime Media Holdings Inc., as the majority stakeholder, will invest 51 percent while ABS-CBN, as the minority stakeholder, will own 49 percent.
“(I)ntending to find ways to continue providing news to the public, ABS-CBN is entering into a joint venture with Prime Media Holdings Inc. The new company will produce various programs, which will be supplied to broadcasters and other third-party platforms, including Philippine Collective Media Corp.,” ABS-CBN said.
Under the agreement, the joint venture will be incorporated with an initial capital stock of P100 million consisting of 100 million common shares with a par value of P1 apiece.
“This gives some of our former personnel a chance to find job opportunities. It is also a way to continue providing accurate and balanced news and information to the country,” the broadcast media giant said.
The joint venture will be led by a board of directors made up of nine members, five of whom will be appointed by Prime Media, while the other four will be designated by ABS-CBN.
The undertaking will also offer employment opportunities for personnel affected by TeleRadyo’s closure.
For ABS-CBN, the partnership with Prime Media provides it with an additional revenue stream through equity investment and share in the projects of the joint venture.
The network is trying to return to profitability after falling in the red all throughout the COVID-19 pandemic.
Prime Media is a subsidiary of RYM Business Management Corp., a holding firm owned by Romualdez.
TeleRadyo off air by June 30
ABS-CBN earlier announced that it is shutting down its loss-incurring TeleRadyo by June 30, marking another setback for the network after losing its free TV franchise in May 2020.
In a regulatory filing, ABS-CBN announced that it could no longer finance TeleRadyo’s operations moving forward, leaving it with no choice but to shut down the platform starting June 30.
TeleRadyo has sustained financial losses since ABS-CBN went off the air in 2020, during the administration of former president Rodrigo Duterte, after legislators led by SAGIP party-list Rep. Rodante Marcoleta denied the network a fresh franchise. This resulted in the transfer of television and radio frequencies previously assigned to the network.
Since then, ABS-CBN has taken a different path in preserving its business, signing deals with international channels and online sites.
The network has also signaled its commitment to go digital, putting into question the future of its traditional platforms, including radio.
While the company continued to operate online and through its cable channels, the non-renewal of its franchise led to the closure of its regional networks and the layoff of thousands of employees.
“The company is deeply saddened by this closure and having to part ways with the many passionate and committed people who have made Teleradyo an important source of news and information for many Filipinos,” ABS-CBN said.
Romualdez was among the 70 lawmakers who voted in favor of a congressional resolution to deny ABS-CBN of a new franchise. – Janvic Mateo