ABS-CBN responds to issues being raised regarding its deal with TV5
Media company ABS-CBN, the Kapamilya network, released a statement on issues about its partnership with TV5, tagged as the Kapatid network.
To recall, reports about the “merge” that will happen between the two major TV networks in the Philippines started to circulate back in June. At that time, when TV5 Chairman Manny V. Pangilinan was asked about the partnership deal, he did not give a specified answer as nothing was final back then.
When the partnership negotiation was finalized, the two media companies officially announced their deal early this month. However, lawmakers and the National Telecommunications Commission (NTC) would not let this deal just pass without them reviewing it.
Sagip party-list Rep. Rodante Marcoleta criticized the deal as he said that it was against the law. He was among the lawmakers who voted against the renewal of ABS-CBN’s franchise. On the other hand, for Senator Raffy Tulfo, the two networks joining together are a dream team.
On August 24, the Kapamilya network released a statement regarding this issue. The media company said that together with TV5, they have “agreed to a pause in their closing preparations.”
“This pause will give the space for both media organizations to respond to the issues, and accommodate any relevant changes to the terms,” the network stated.
On the other hand, both companies believe that the partnership deal that they have a “favorable impact on Philippine media, and on free-to-air television—which remains the most affordable and extensive source of entertainment and public service to Filipinos.” Prior to this partnership deal, some ABS-CBN shows were already being aired on TV5.
In Section 10 of REPUBLIC ACT No. 11342, this is stated:
Sale, Lease, Transfer, Grant of Usufruct, or Assignment of Franchise.— The grantee shall not sell, lease, transfer, grant the usufruct of, nor assign this franchise or the rights and privileges acquired thereunder to any person, firm, company, corporation or other commercial or legal entity, nor merge with any other corporation or entity, nor shall transfer the controlling interest of the grantee, simultaneously or contemporaneously, to any person, firm, company, corporation, or entity without the prior approval of the Congress of the Philippines. Congress shall be informed of any sale, lease, transfer, grant of usufruct, or assignment of franchise or the rights and privileges acquired thereunder, or of the merger or transfer of the controlling interest of the grantee, within sixty (60) days after the completion of the said transaction. Failure to report to Congress such change of ownership shall render the franchise ipso facto revoked. Any person or entity to which this franchise is sold, transferred, or assigned shall be subject to the same conditions, terms, restrictions, and limitations of this Act.
Source: The LawPhil Project
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