Tv network

Philippines’ ABS-CBN cancels agreement to acquire stake in rival television network

Filipino broadcaster absCBN Corp announced on Thursday that it has ended a OK take a minority stake in the local operator TV5 Network Inc, weeks after some lawmakers questioned the legality of the plan.

absCBNwhich primarily streams content online since losing its rights to operate radio and television frequencies in 2020, gave no reason for the removal of the OKwhich she said was a mutual decision.

The termination follows concern from some lawmakers during an investigation last week that TV5 could violate its franchise if it goes ahead with the plan to sell a 35% stake to absCBN for 2.16 billion pesos ($38.3 million).

“The parties have confirmed that they have not implemented any of the transactions covered by the investment agreement”, absCBN said in a statement.

The OK could have allowed absCBN show some of its programs to a wider audience through TV5 free channels. absCBN stated that these channels remain the best source of entertainment and public service for Filipinos.

absCBN Shares fell nearly 12% to a one-month low as trading resumed after an hour-long hiatus on Thursday. The broader stock index rose 0.19%.

absCBN lost its broadcast franchise to Congress in 2020 and was among several media groups hit by legal or licensing issues after angering former President Rodrigo Duterte.

Before that, it was the largest broadcaster in the country, with a reach of up to 55 million people in the country and millions more Filipinos abroad.

The two companies also dropped a OK for TV5’s cable unit to acquire a 38.88% interest in absCBNof Sky Cable Corp.