Ayala Group denies reported plan to acquire GMA Network

MANILA, Philippines - The Ayala Group emphasized yesterday that the acquisition of a major media outfit is not in its current priorities.

It was earlier reported that Ayala executives are setting their sights on listed GMA Network, as the acquisition of a major media outfit has long been in the agenda of the Ayala Group. 

According to the report, GMA Network is a logical choice for the conglomerate because of synergies with the group’s telecommunications unit Globe Telecom.

Ayala Corp. senior managing director and CFO Rufino Luis Manotok said as a holding company, the group continues to look at investment opportunities in various sectors. 

“But we would like to clarify that the ‘acquisition of a major media outfit’ is not in our company’s current plans and no company in the Ayala Group is doing any due diligence on GMA or engaged in any discussion in relation to the acquisition of GMA,” he emphasized. 

A few years back, GMA held discussions with the Philippine Long Distance Telephone Co. (PLDT) on the possibility of the latter buying into the broadcasting network but the talks fizzled out. Instead, GMA decided to go public and listed a portion of its shares at the local stock exchange. 

GMA Network is majority owned by the family of Felipe Gozon – the company ’s chairman and president – and the Duavit and Jimenez families.

When asked whether GMA is for sale, one of the owners said “anything is for sale at the right price.” 

PLDT chairman Manuel Pangilinan, for instance, is reportedly still interested in acquiring a stake in GMA Network.

When asked whether he is interested in another television network, possibly government-controlled RPN 9 and IBC 13, Pangilinan said: “Is there still room for a third television station?”

Pangilinan earlier admitted that he was approached by some private individuals who own shares in these government stations on the possibility of a sale.

Except for GMA Network and the Lopez-owned ABS-CBN, other players in the broadcasting industry are not doing as well. Businessman Antonio ‘Tonyboy’ Cojuangco, who earlier acquired the Associated Broadcasting Co. (ABC 5), is reportedly facing huge losses due to the network’s dire financial state. 

His Philippine Multi-Media Systems Inc. (PMSI), the owner of satellite cable provider Dream Broadcasting, is under rehabilitation. PMSI filed for rehabilitation with Branch 149 of the Makati Regional Trial Court on March 28, 2007. The court issued a stay-order, which allowed the company to suspend payment of its outstanding liabilities amounting to P1.15 billion. 

Cojuangco also suffered a major financial blow when his family’s shares of stocks in PLDT were declared as ill-gotten by the Supreme Court. The shares, worth billions of pesos, were later acquired by Pangilinan’s group. 

Meanwhile, knowledgeable sources revealed that the Lopezes are not interested in selling a stake in their tv network ABS-CBN Broadcasting Corp. 

There were earlier speculations that the close business ties between the PLDT Group and the Lopezes could open the doors for PLDT finally getting into the television business.