PLDT recently revived its bid to acquire a stake in GMA Network, more than four years after it pulled out of an agreement to acquire a majority stake in the broadcast firm.
The STAR learned that PLDT group chairman Manuel V. Pangilinan and president Napoleon Nazareno met recently with GMA chairman and president Felipe Gozon to discuss the acquisition scheme but no specific offer was made. The meeting, which was requested by the PLDT group, was held at the GMA office in Quezon City.
Highly-placed sources said that while PLDT is willing to initially acquire a minority stake in GMA, currently owned by three families namely the Gozons (30 percent), the Duavits (35 percent), and the Jimenezes (35 percent), it wants a clear path to eventually become majority owner of the company which owns and operates Channel 7.
"PLDT is willing to settle for a minority position in GMA initially. But it wants to agree with the owners of GMA on how to get to majority in whatever way," a source disclosed.
Gozon, during the meeting, remained non-committal, and instead asked Pangilinan and Nazareno to give the owners of GMA an offer they the source said. This, the source added, would be "much higher than the current valuation of P30 billion."
On Feb. 8, 2001, PLDT, through subsidiary Mediaquest Holdings signed a memorandum of understanding (MOU) with GMA Network to acquire a 66.67-percent stake in the broadcasting network for P8.5 billion. Later in the year, however, PLDT had to withdraw from the MOU due to concerns raised by its creditors over some $1.3 billion in loans that will mature in 2002 to 2004.
Despite due diligence, PLDT and GMA did not arrive at a purchase agreement. The telecom giant reduced its valuation of the television firm to about P12 billion, from P14.58 billion. Negotiations eventually fell through, but the parties kept in touch.
Gozon himself has confirmed that Pangilinan has remained interested in acquiring Channel 7, now the most profitable broadcast network in the country.
"Manny [Pangilinan] has not lost his interest in Channel 7. That is why we keep on talking," he said.
He added that with GMA’s market value now estimated at about P30 billion, Pangilinan would have to make a very attractive offer for the network’s major shareholders to consider selling.
GMA Network posted a net profit of P400 million in the first three months this year, up 62 percent against the same period in 2004 when advertising load was abnormally high due to the May presidential elections.
Fierce rival ABS-CBN Broadcasting Corp., on the other hand, suffered a net loss of P114 million.
GMA likewise scrapped a planned public listing this year after one of the three major shareholders, reportedly the Jimenezes, disagreed on a provision that would keep control of the network among themselves, and at the same time, prevent the likes of Pangilinan from gaining control of the broadcast firm.
However, GMA sources said that going into an initial public offering (IPO) of a minority portion of the company’s shares remains an option and will be probably revived in five years’ time when its valuation has doubled to P60 billion.
In addition to plans to acquire GMA PLDT has likewise entered into an agreement with American direct-to-home (DTH) satellite company, Echostar, for an $85 million joint venture to offer DTH satellite TV in the Philippines.