Uy, Converge out to rescue Sky Cable

MANILA, Philippines — When you aim high, you reach for the sky. That’s just what Dennis Anthony Uy is shooting for in his next venture: a partnership with Sky Cable Corp. to lift it out of P5-billion debt.

The STAR was told by several sources that tech titan Uy, owner of Converge ICT Solutions Inc., is putting on his shining armor to rescue Sky Cable from its financial slump.

A source said a partnership between Converge and Sky Cable is expected to be announced today, July 22, and the agreement will initially cover sharing of network assets.

However, the long-term plan for the tieup is for Sky Cable to come up with a rehabilitation plan that would enable it to pay all of its debts. Sky Cable’s net loss stands at P653 million as of 2023, and ABS-CBN Corp., its parent unit, is struggling to keep it afloat.

Sky Cable also owes P4.53 billion to its lenders, but the company is committed to settling them within the year as scheduled. Further, Sky Cable has its neck stuck in a headlock, gasping for air as pay TV subscriptions decline.

To recall, Sky Cable also lost its right to offer direct-to-home services when ABS-CBN failed to land a fresh franchise in 2020 for political reasons.

The STAR was also informed by another source that Uy is demanding a unified approach, from the management and workers, to banks and suppliers, to extend Sky Cable’s life cycle.

Uy hopes that if ever he acquires Sky Cable in the future, the company is operating on a new business model that is more efficient cost-wise.

Prior to this, telco giant PLDT Inc. was supposed to buy out Sky Cable for P6.75 billion, but the deal was called off in February. The parties said it was a decision reached mutually, but held off any detail as to the reason for the withdrawal.

Had PLDT proceeded with the acquisition, Sky Cable would have folded its pay TV. Moreover, it would have reduced the financial burden of the Lopez empire, freeing it up of a business that has struggled to come by since 2020.

An earlier report by InsiderPH said the agreement with Sky Cable would allow it to ride on Converge’s fiber network, converting it from cable TV to digital TV.

The report also detailed that Uy, from his own pockets, will extend about P2 billion to Sky Cable to repay some of its liabilities, from bank loans to retirement packages.