MVP CONFIRMS GMA7-TV5 MERGER TO BE SEALED WITHIN THE YEAR!

MANILA, Philippines - Business tycoon Manuel V. Pangilinan said a deal to invest in GMA Network Inc. may be finalized within the year, as discussions with the broadcasting company's major shareholders, the families of Gozon, Jimenez and Duavit, are moving positively.

“I confirm that we are in discussions with the three families with a view to make an investment in GMA. Once it has been finalized, we will make an announcement because we are both public companies," Pangilinan said at the sidelines of the Philippine Long Distance Telephone Co. (PLDT) stockholders' meeting.

If the deal pushes through, the investment will be made through MediaQuest Holdings Inc., the media holding firm of PLDT Beneficial Trust Fund.

Pangilinan said there are still conditions that need to be met by both parties before the deal is finalized.

"There are positive vibes on both sides. There is a chance that an agreement will be reached within the year but to close the conditions, a precedent must be satisfied. There are conditions required on their side and there are conditions required on our side and if all of those are fulfilled then we will give them the money and they have to give us their shares," he said.

The PLDT chairman, who also owns TV5, dismissed allegations the GMA Network deal will result in a monopoly, noting there are many television stations.

Despite having TV5, Pangilinan said it is important for his group to invest in GMA7, citing the telecommunications industry's growing demand for content.

"These two spaces are converging.  PLDT has a choice to stay as a utility, as a delivery system, as an infrastructure system focusing on modernizing and upgrading its network. But simply being that.  The next frontier lies in media space.  How you blend the telco utility’s operations and the creative part of social media is a big challenge. Nobody has been successful yet. A small number of international telcos are attempting to do that now. For them to offer and deliver their own services they need the telcos and for the telcos to be able to enlarge their services they need the social media," he said.

Talks about a merger between GMA7 and TV5 have persisted in recent months, despite both camps playing it coy. Pangilinan had already once tried to acquire a controlling stake in GMA7, but the deal fell through due to various reasons.

ABS-CBNnews.com is the news website of ABS-CBN Corp., which competes with GMA7 and TV5.

SOURCE