The business of show business

The boardroom intramurals in GMA Network is focused on two families: the Jimenez family, who built the network to the giant that it is, and the Gozon family who took the reins after former GMA top honcho Menardo Jimenez retired and has now successfully wrestled the no.1 slot from ABS (my congratulations to both families).

But my friends inside the network say that the Duavit family, represented by Gilberto Jr. or Jimmy should not be discounted. Though they have played in the shadows all this time and have not been credited with GMA’s success, insiders say they are really the power inside the station.

For one, the Duavits own 35 percent of the company, like the Jimenezes, while Felipe Gozon only owns 30 percent. In fact, supporters of the Duavit camp within the network claim that the reason why Gozon is president is because Duavit says so. Otherwise, Gozon, who owns the least amount of shares, has very little influence. In fact, Gozon also needs to secure the go-signal of the Jimenez family who owns the votes needed to push through with major decisions such as the planned initial public offering (IPO).

Furthermore, Duavit’s supporters (and surprisingly there are many of them within GMA ) say that the real reason for GMA’s recent success is because of the younger Jimmy.

Gozon merely gives the orders, but it is Jimmy who executes. They argue that just like in a basketball game, the real hero is not the coach who gives the order, but the player who executes and makes the shot - that to them is Jimmy.

Another interesting comment I got regarding the "family feud" is that the Gozon-Jimenez families are just playing the old fashioned "good cop - bad cop" game. The insider explained that the shareholders were unhappy with the indicative valuation given to them by their underwriter, Deutsche Bank. So they decided to put on a show, pretend they are feuding and called off the IPO. In time, Gozon will go back to the underwriter to say that if the valuation is increased, the Jimenez family may change their mind. In the end, both families laugh their way to the bank.

A second version I heard was another investment bank, UBS Warburg came back with a better offer, but a deal had been struck with Deutsche Bank. So the "good cop-bad cop" show was launched with a new investment bank arising soon.

You’ll never know where the truth may lie, but like they always say, "There’s no business like show business!"

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