GLOBE TELECOM CONFIRMS PLANNED SYNERGIES WITH THE ABS-CBN MEDIA GROUP!

MANILA, Philippines - The CEO of Ayala-led Globe Telecom Inc. admitted that there are ongoing talks with the Lopez Group, which controls the leading media and cable industry players, for business synergies on top of their upcoming partnership on telecommunications.

“We’ve always been talking. I cannot deny that Gabby (Eugenio Lopez III) and I regularly talk. We always talk on what do we partner with, the capabilities, what’s going on," shared Globe president Ernest Cu in an interview with reporters.

Cu said they continue to explore opportunities that involve complementing their businesses amid changing consumer behavior and slow down in traditional telco growth services.

"It includes all forms of discussion such as discussions about Sky Cable, about ABS-CBN, about Bayan on how do we synergize them,” he added, referring to the cable, broadcast media, and the telecommunications units under listed conglomerate Lopez Holdings Corp (formerly Benpres Holdings Corp.).

When asked if they were discussing partnerships that could eventually lead to an acquisition by Globe of any of the conglomerate's units, Cu replied, “all of the above. They're all included."

Cu went on to say that he and Lopez regularly have breakfast together every 3 months or so to discuss all forms of partnerships. “But the objective is to partner with someone who knows content and ABS-CBN is a fantastic content. The best content for Globe, better than GMA 7. Gabby knows his business,” he said.

Cu had once said Globe is exploring partnerships with a media firm amid plans of rival Philippine Long Distance Telephone Co. (PLDT) to acquire media firm GMA Network, Inc. (GMA-7).

Cu's recent admission comes after the National Telecommunications Commission (NTC) gave its nod to the mobile and broadband frequencies sharing between Globe and Lopez-led Bayan Telecommunications.

The NTC said this will expand their network reach and service quality and address growing consumer complaints. Globe said this joint use will help it address increasing demand for voice, SMS and mobile data services. Bayan, on the other hand, can soon offer mobile services nationwide.

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