ABS-CBN Corp. and TV5 Network Inc. announced that they've signed their long-negotiated joint venture to air Kapamilya shows on the Kapatid network.
In a joint statement, ABS-CBN and TV5 said they executed an "investment agreement" allowing the Kapamilya network to acquire 6,459,393 primary common shares in TV5. This represents 34.99% of the total voting and outstanding capital stock of TV5, for an aggregate subscription price of P2.16 billion.
MediaQuest Holdings, which owns and operates TV5, will have a reduced stake of 64.79%, from 99.67%, following the deal.
MediaQuest Holdings Chairman Manny V. Pangilinan said the partnership would allow them to achieve their "cherished goal" to provide quality content across entertainment, sports, and news "in the service of the FIlipino people."
"Together, we believe we can achieve this in greater measure and success," Pangilinan said.
ABS-CBN Chairman Mark Lopez said TV5 presents a "fantastic platform" that would help them "achieve synergies in production content and talent management," as well as "maximizing content delivery."
"We look forward to be of greater service to the public as we come together in taking TV5 to the next level," Lopez said.
ABS-CBN President and CEO Carlo Katigbak, for his part, said the partnership is "consistent with the strategic intention of ABS-CBN to evolve into a storytelling company whose goal is to reach as wide an audience as possible."
"Ang ating mga Kapatid ay ating mga Kapamilya."— ABS-CBN News (@ABSCBNNews) August 11, 2022
ABS-CBN Corporation and TV5 signed a partnership deal on Wednesday, as both parties said the "investment agreement" allows the Lopez-led media company to acquire primary common shares in the Manny Pangilinan-led network. pic.twitter.com/e4RIKNIa6v
Cignal TV, MediaQuest's satellite television subsidiary, will also enter a deal with ABS-CBN's Sky Cable Corp. It's set to acquire 38.88% of the latter for P2.86 billion.
TV5, ABS-CBN announce historic investment deal— ONE News PH (@onenewsph) August 11, 2022
MVP Group's TV5 Network Inc. has signed an investment agreement with ABS-CBN Corporation after more than a year of negotiations. pic.twitter.com/FiHnFtIIL9
The deals are expected to be finalized within the month, subject to "fulfillment of certain closing conditions."
TV5 began airing ABS-CBN's popular primetime programs FPJ's Ang Probinsyano and ASAP Natin 'To in 2021. Last July, It's Showtime! made its debut on TV5 with a live audience.
"Our biggest priority today is ensuring that ABS-CBN continues to tell excellent stories. Let me express our gratitude to all our Kapamilya who have committed their support to our company, despite the many sacrifices we have asked them to make," ABS-CBN CEO Carlo Katigbak posted on Twitter a day before the deal was formally announced.
Our biggest priority today is ensuring that ABS-CBN continues to tell excellent stories. Let me express our gratitude to all our Kapamilya who have committed their support to our company, despite the many sacrifices we have asked them to make.— Carlo Katigbak (@unrealCLK) August 10, 2022
We are nothing without you. ❤️💚💙
ABS-CBN went off the air in May 2020 after Congress junked its petition to renew its franchise.