PLDT unit takes 100% ownership of ABC-5

MANILA, Philippines - Mediaquest, the corporate vehicle for media-related investments of the Philippine Long Distance Telephone Co. (PLDT) group, now owns 100 percent of television network Associated Broadcasting Corp. (ABC-5) and Primedia Inc., the broadcasting firm’s major block airtimer, PLDT chairman Manuel Pangilinan revealed yesterday.

He also disclosed that he has approached Anthoni Salim, chairman of First Pacific Co., on the possibility of Mediaquest acquiring Indosiar, a national television station in Indonesia which is publicly listed and majority owned by Salim. Pangilinan is the managing director and CEO of the Hong Kong-based First Pacific.

Indosiar’s parent company, PT Indosiar Karya Media Tbk, is a member company of the Salim Group conglomerate.

“Anthoni said he will study it. Anyway, we can operate ABC-5 and Indosiar, possibly exchange talents between the Philippines and Indonesia,” Pangilinan said.

Mediaquest said it is spending around P5 billion this year for ABC-5, bulk of which will be to improve transmission reach, signal strength, building a new studio in Malabon (ABC-5 is currently housed in Novaliches), and expanding the network’s provincial reach.

Asked how much total investments the PLDT Group is putting into ABC-5, Pangilinan refused to give a number, but said “it will be huge.”

He pointed out the cast for the entire 100-percent stake of the two companies is P4 billion.

Last year, Mediaquest, wholly owned by the PLDT Beneficial Trust Fund which, in turn, is a 100-percent subsidiary of PLDT, acquired a 75-percent stake in ABC-5, controlled by businessman Antonio ‘Tonyboy’ Cojuangco. The remaining 25 percent is held by other individuals.

Mediaquest president Ray Espinosa revealed that they want ABC-5 to expand its nationwide reach, just like that of industry leaders GMA Network and ABS-CBN.

Espinosa also disclosed that they are looking at acquiring radio stations to complement ABC-5’s broadcasting business.

Meanwhile, Pangilinan emphasized that the decision to acquire 100 percent of ABC-5 and Primedia is aimed at providing content for the other businesses of PLDT.

Mediaquest’s current portfolio includes a 30-percent stake in BusinessWorld Publishing Corp., a 51-percent stake in Nation Broadcasting Corp. (NBC) and less than 10-percent stake in Lopez-led SkyCable Corp. It also owns a direct-to-home (DTH) satellite television company which operates under the brand name Cignal.

Cignal ended 2009 with a net paid subscriber base of 45,000. Espinosa said they hope to increase this to 200,000 this year.

Mediaquest has so far invested P700 million into its new DTH business.