MANILA, Philippines - The Philippine Long Distance Telephone Co. (PLDT) group is in the final stages of discussions to acquire a majority stake in a block airtimer of broadcasting firm Associated Broadcasting Co. (ABC) which operates TV Channel 5.
“MediaQuest is in the final stages of discussions with respect to acquiring a majority stake in Primedia, a Philippine domestic corporation engaged in developing programming content for television and radio, specifically ABC TV5,” according to Ray Espinosa, director of MediaQuest Holdings Inc.
The PLDT group has been on the look-out for new acquisitions, particularly content providers which are organizations that create information, educational, or entertainment content for the group’s various outlets such as Internet, mobile phones, direct-to-home (DTH) satellite television service, mobile television, among others.
Malaysian newspaper The Star earlier reported that MBP Primedia Inc. is in the final stage of talks with PLDT for its 70-percent stake in ABC TV5’s block airtimer.
“The company is in the final stage of the disposal. It will happen very soon,” a source of The Star said.
Primedia has the exclusive right to schedule and manage the airtime sale of TV5, which is owned and operated by ABC.
Antonio “Tonyboy” Cojuangco, the current president and chief executive officer of ABC, used to be the chairman of PLDT.
Primedia inked the blocktime deal with TV 5 last March 2008. Primedia was then in charge of producing and sourcing most of the entertainment shows, while ABC 5 remained responsible for news programming and station operation.
Primedia is part of the overseas portfolio of Malaysian media giant, Media Prime, which is listed in Bursa Malaysia, formerly the Kuala Lumpur Stock Exchange.
The Philippine deal was part of the Malaysian conglomerate’s efforts then to scour for opportunities abroad through an investment vehicle minority owned by Media Prime that other investors could also join.
But the global financial crisis happened and financing dried up.
On the other hand, Mediaquest Holdings Inc, is a unit of the PLDT’s wholly-owned Philippine Long Distance Telephone Co. Beneficial Trust Fund.
MediaQuest has been the corporate vehicle for the PLDT group’s various media-related ventures. Its portfolio includes a 30 percent stake in the business paper BusinessWorld; a controlling interest in National Broadcasting Corporation (NBC), which operates a network of radio and TV stations, and; a minority interest in cable TV company Sky Cable, and a controlling stake in 360media, which has a Direct-to-User license that permits it to broadcast via satellite and terrestrial wireless transmission Mobile TV and direct-to-home services.
It has a pending discussion to also purchase a stake in the Philippine Star.
Company sources said PLDT chairman Manuel Pangilinan remains interested in acquiring a major television station.
Earlier discussions with owners of GMA Network for a possible stake in the broadcasting company however fizzled out. Pangilinan and ABS-CBN chairman Eugenio Lopez III also have denied reports that they are in talks for an acquisition of an interest in ABS-CBN.