No more ABS-CBN TV5 Deal
ABS-CBN TV5 Deal – ABS-CBN and TV5 have officially announced that the two networks’ Investment Agreement is terminated.
Rumors about the collaboration between the two TV networks started to circulate last June. At that time, TV5 Chairman Manny V. Pangilinan said that the negotiation was ongoing.
Following the speculations, reports surfaced that the deal is sealed. The Investment Agreement was dated August 10, 2022. However, the National Telecommunications Commission (NTC) and other agencies, including Sagip party-list Rep. Rodante Marcoleta questioned the ABS-CBN TV5 deal. The deal stated the acquisition by ABS-CBN of 34.99% equity interest in TV5.
On August 24, the TV networks released a joint statement saying that they “agreed to a pause in their closing preparations.” In a statement released by ABS-CBN on September 1, it was stated that both parties have officially agreed to terminate the agreement.
This termination of the deal was officially done through a Memorandum of Agreement. “The Parties confirmed that they have not implemented any of the transactions covered by the Investment Agreement and the Convertible Note Agreement,” the media company stated.
Here is the statement.
Prior to this supposed big deal between the two TV networks, Kapamilya shows have been airing on the Kapatid network already, such Ang Probinsyano, ASAP Natin ‘To, and just recently, It’s Showtime.
With this, fans of the Kapamilya network are elated and this somehow brought hope that network war in the Philippines is no longer existing. The supposed Investment Agreement between ABS-CBN and TV5 also brought a brighter perspective for many people in the industry.
However, some people brought up the legalities of this matter, especially since ABS-CBN’s franchise was revoked. Section 10 of REPUBLIC ACT No. 11342 stated this:
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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