PLDT’s Mediaquest takes 75% stake in TV5 television network

PHILIPPINE LONG Distance Telephone Co. (PLDT) has realized its aim of purchasing a television network, with an allied company yesterday announcing the purchase of a majority stake in TV5, the country’s third largest.

Mediaquest Holdings, Inc., a unit of the Beneficial Trust Fund of PLDT, said it had bought a 75% interest in Cojuangco-led ABC Development Corp., the owner and operator of TV5. A separate agreement to acquire the Philippine unit of Malaysian company Media Prima Bhd, MPB Primedia, is expected to be completed within the month.

Primedia has a block time agreement with ABC to manage and operate the entertainment block of TV5. The news block remains in the hands of ABC.

A purchase price was not announced, and company officials could not immediately be reached for comment.

Mediaquest director Ray C. Espinosa, in a statement, said the acquisition would "further enhance TV5’s programming, ratings and sales, as well as improve the broadcast network’s coverage and signal strength throughout the country."

Mediaquest already has a stake in National Broadcasting Corp. which owns and operates several radio and television networks. It also has a minority stake in the cable company Sky Cable and BusinessWorld, and is currently negotiating a deal to increase its stake in the Philippine Star.

In 2001, PLDT was reported to be in the process of acquiring control of GMA Network, Inc. but the deal was put off over alleged disagreements in the price. GMA and ABS-CBN are the two largest networks in the country.

PLDT’s acquisition binge has been questioned by observers given a constitutional prohibition against media monopolies that is commonly viewed as a curb against one firm taking significant stakes in the print, TV and radio industries.

Article XVI, Section 11 of the 1987 Constitution, which limits media ownership to Filipinos, also states that "The Congress shall regulate or prohibit monopolies in commercial mass media when the public interest so requires. No combinations in restraint of trade or unfair competition therein shall be allowed." — E. N. J. David