LANDMARK DEAL | MediaQuest, ABS-CBN deal to promote ‘healthy competition’ in broadcast industry

LANDMARK DEAL | MediaQuest, ABS-CBN deal to promote ‘healthy competition’ in broadcast industry – KBP head

August 12, 2022 , 03:48 PM

By Beatrice Puente

(August 12, 2022) – The Philippines’ broadcast industry could expect healthier competition after MediaQuest Holdings, Inc. and ABS-CBN Corporation reached an investment agreement, the country’s radio and television organization said on Thursday night, refuting claims the partnership would promote monopoly.

Herman Basbaño, the president of the Kapisanan ng mga Brodkaster ng Pilipinas, said the billion-peso deal would pave the way for a better broadcast landscape in the country.

“This would open up healthier and better competition because we know that ABS-CBN is something,” said Basbaño on One News’ “The Chiefs” on Cignal TV. “They have experience and I’m sure na ‘yung programa nila will answer some of those questions. At maraming pagpipilian ‘yung mga tao.”

On Wednesday, MediaQuest—the company that controls TV5 Network, Inc. and Cignal TV—entered into an agreement with ABS-CBN which allowed the latter to gain a 34.55% stake in the Kapatid network. While the shares of MediaQuest decreased, it remains to be the controlling shareholder in TV5.

At the same time, Cignal TV also bought 38% into ABS-CBN Corporation’s Sky Cable.

SAGIP Rep. Rodante Marcoleta had questioned the deal even before its details were confirmed by the two networks yesterday, asking the Philippine Competition Commission (PCC) and the National Telecommunications Commission (NTC) to initiate a review.

In a statement, the NTC said it would look into the deal.

“Kailangan po natin ito busisiin mabuti dahil madami pong lumabas na violations ang ABS-CBN noong nakaraang pagdinig ng renewal ng kanilang prangkisa noong nakaraang 18th Congress na nagresulta sa ‘di pag-renew ng kanilang prangkisa” said NTC commissioner Gamaliel Cordoba.

ABS-CBN was unable to secure a fresh 25-year franchise from a panel at the lower house in 2020. Lawmakers allied with former president Rodrigo Duterte, including Marcoleta, insisted that the network had committed violations even if the invited agencies denied the alleged liabilities.

Jane Basas, the president and chief executive officer of MediaQuest, said they welcome the review of the NTC. MediaQuest chairman Manny Pangilinan earlier assured that the deal abides by the country’s laws.

“I cannot speak for ABS-CBN, but as far as I know, they’ve been cleared of all the alleged liabilities by the relevant government agencies. For us, we actually welcome any investigation because we are confident that we are compliant,” said Basas on One News’ “The Big Story” on Cignal TV.

Basas agreed that the partnership would promote better competition between broadcast networks given the experience of ABS-CBN in producing quality programs. She also noted that the deal could be exempt from the review of the PCC because the total amount of P11 billion was far from the P50 billion threshold.

In a statement, the PCC said it has yet to receive notification about the deal. But it stressed the agency can direct its Mergers and Acquisitions Office to conduct a motu proprio review if deemed necessary.

Basas said they are working out the closing stages of the agreement. Once closed, Basas believes this would create employment opportunities as the networks collaborate in improving the programs they provide.

“We are hoping that we could sign because we truly believe this is good for the Filipino viewers. And if it’s good for the viewing public, then it’s good for the Philippines,” said Basas.

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