ABS-CBN, TV5 scrap investment deal amid political pressure
Following intense political scrutiny, an investment proposal that would have enabled the Philippine TV network ABS-CBN to resume operations after it was shut down by the government two years ago collapsed.
On August 10, ABS-CBN decided to purchase a 35% ownership in smaller competitor TV5 for 2.16 billion pesos ($38.3 million) in order to resurrect its company. The agreement’s termination less than a month later serves as a reminder of the mounting political strain media companies in the Philippines are under.
ABS-CBN and TV5 on Thursday said they have “mutually agreed to terminate the investment agreement,” which would have enabled the former to air more content via the latter’s free-to-air channel, which is accessible to many TV viewers in the country.
Last week, as Congress, which is now controlled by supporters of the new president Ferdinand Marcos Jr., opened an investigation into the contract, the firms “paused” their plans to close the pact. Separately, other members of the House of Representatives have demanded inquiries into alleged transgressions by TV5, including claims of foreign ownership, which are illegal in the Philippines.
According to the firms, a separate investment agreement between the cable divisions of the two broadcasters was also canceled. By purchasing airtime on other networks, such as TV5, ABS-CBN maintains its cable operations and broadcasts some of its popular programming.
After former President Rodrigo Duterte’s congressional allies denied the company’s request to renew its 25-year operating franchise, ABS-CBN shut down its primary TV station in 2020. Advocates for media freedom were disturbed by the closing of the largest broadcaster in the nation, which destroyed thousands of jobs.
Duterte acknowledged using his “presidential powers” to prevent the license renewal just days before he announced his resignation in June. When several of his 2016 campaign advertisements were not broadcast by the network, the former president constantly criticized the outlet.
The National Telecommunications Commission transferred channels previously used by ABS-CBN to Manuel Villar’s Advanced Media Broadcasting System (AMBS) in January. Manuel Villar is a former senator and multi-billionaire.
Camille Villar, a deputy speaker in the House of Representatives, was one of the legislators that voted against the ABS-CBN franchise renewal proposal. AMBS intends to begin broadcasting in October.
