{"id":323436,"date":"2023-05-30T20:57:49","date_gmt":"2023-05-30T12:57:49","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=323436"},"modified":"2023-05-30T20:57:51","modified_gmt":"2023-05-30T12:57:51","slug":"abs-cbn-prime-media-joint-venture","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/abs-cbn-prime-media-joint-venture\/","title":{"rendered":"ABS-CBN could hasten return to profitability with Prime Media joint venture"},"content":{"rendered":"\n<div style=\"height:26px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\">Analysis and Recommendation<\/h2>\n\n\n\n<p>ABS-CBN Corporation (ABS) and Prime Media Holdings Inc. (PRIM) jointly disclosed yesterday their agreement to form a joint venture company (JVC) where 51% will be owned by PRIM while the balance of 49% will be held by ABS.<\/p>\n\n\n\n<p>In a separate disclosure, ABS announced that they will stop airing TeleRadyo by June 30, 2023 due to mounting losses since 2020. Nonetheless, the JV with PRIM will give TeleRadyo\u2019s employees and ABS- CBN\u2019s employees new employment opportunities. In the same disclosure, ABS-CBN noted that it will look to supply content through Philippine Collective Media Corporation (PCMC).<\/p>\n\n\n\n<p>Who is PCMC? Philippine Collective Media Corporation, a company that was folded into PRIM in 2021 through a backdoor listing, initially had a broadcasting franchise in Eastern Visayas. In 2020, their broadcasting franchise was revised which allowed PCMC to broadcast nationally and to operate a digital television system.<\/p>\n\n\n\n<p>Meanwhile, PRIM is majority owned by RYM Holdings Inc., the holding company of the Romualdez family, with a 42.77% stake in the listed company.<\/p>\n\n\n\n<p><strong>Our View: <\/strong>Following its inability to renew its broadcasting license, ABS has continued to look for partnerships to distribute its content and hopefully return to profitability.<\/p>\n\n\n\n<p>Last year ABS tried to enter into a joint venture with Cignal Cable Corp. of the PLDT Group (TEL) for the acquisition of common shares of TV5, however in the end the deal was terminated following political pressures. Should this new deal go through, the agreement between ABS and PRIM would pave the way for ABS to get back on national tv and through the airwaves.<\/p>\n\n\n\n<p>Through this partnership, ABS-CBN may likely return to profitability. Last year ABS narrowed its losses to P2.46 billion vs. a loss of P5.64 billion in 2021.<\/p>\n\n\n\n<div style=\"height:26px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p style=\"font-size:16px\"><em><em>This report is prepared by PinoyInvestor\u2019s partner broker below. Find out more about <a href=\"https:\/\/www.pinoyinvestor.com\/smartinvestor\/our-partner-brokers\/\">our partner brokers<\/a> and sign up to avail their complete trading brokerage services.<\/em><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Here\u2019s a commentary on an important issue or event affecting the stock market<\/p>\n","protected":false},"author":6,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[],"class_list":["post-323436","post","type-post","status-publish","format-standard","hentry","category-special-reports","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-33"],"_links":{"self":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts\/323436","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/comments?post=323436"}],"version-history":[{"count":1,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts\/323436\/revisions"}],"predecessor-version":[{"id":323438,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts\/323436\/revisions\/323438"}],"wp:attachment":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/media?parent=323436"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/categories?post=323436"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/tags?post=323436"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}