Both the Pangilinan-owned and Lopez-owned media conglomerates surged in stock prices in the stock market, following the official announcement of their widely talked-about partnership deal.
Outlook for the TV5-ABS-CBN joint venture is shaping nicely, with many stock analysts affirming the landmark deal’s optimistic path. Excitement about the deal has intensified, with the stock prices of both media entities’ parent companies take a surge days leading to the official announcement.
PLDT Inc, whose trust fund owns MediaQuest Holdings Inc., rose by 31 points on Thursday, August 11, the day–the agreement got formally announced. Lopez group’s ABS-CBN Corp has been going up in stock prices for five trading days in a row, made another surge on the same day, as it posted a 5% spike. The company’s shares have improved by nearly 30% in just five days, and reflected a massive interest spike among stockholders and investors.
Volume traded under ABS-CBN Corp also saw a ‘gargantuan’ surge of 858%, amounting to 1.35 million stocks traded in just one day. ABS-CBN Holdings Inc’ also notably saw a 323% spike in its volume of shares thar traded under the company, amounting to 265,000 shares.
ABS-CBN’s joint venture with MediaQuest took a year to materialize. The new partnership allows ABS-CBN to claim a 34.99% stake in TV5, which the media giant may opted to push to as much as 49.9% after eight years.
In return, Cignal Cable Corp bought a 39% stake in ABS-CBN’s SkyCable, which is convertible up to 61%, after eight years.
This venture, the two networks will create a formidable single media entity. The partnership entails ABS-CBN and TV5 combining their resources and structures, which means TV5’s national free TV presence may increase dramatically.
Back then, ABS-CBN’s regional network group shut down, alongside the main TV station in Manila, when the Network’s legislative franchise lapsed in May 2020.
Through Cignal’s investment in Sky Cable, ABS-CBN and TV5, an expectation to strengthen and expand their presence in pay television. A part of the deal, included ABS-CBN’s News and Current Affairs department melding with that of TV5.
