MVP to buy majority stake in BusinessWorld

MANILA, Philippines – Mediaquest Holdings Inc, the multimedia arm of Pangilinan-led Philippine Long Distance Telephone Co. (PLDT), is targeting a majority stake in BusinessWorld, a local business broadsheet.

Increasing its current 30% stake is part of the group’s plans to combine BusinessWorld’s reportorial pool with newspaper group Philippine Star and broadcasting firm TV5 to raise the quality of content of MediaQuest’s traditional media platforms. 

“Details are being approved as to how much is being injected into BusinessWorld. It will be north of 50%,” MediaQuest chair Manuel V. Pangilinan said on the sidelines of the PLDT’s annual stockholders meeting on Friday, June 14, 

MediaQuest Holdings is a wholly owned unit of PLDT’s retirement unit, Beneficial Trust Fund. It is a corporate vehicle for the Pangilinan-led group’s convergence strategy, which marries content and distribution.

Under MediaQuest are 3 units: Hastings, television network TV5 and MediaScape Inc., which owns pay TV provider CignalTV. Hastings currently owns 30% of BusinessWorld, 10% of Philippine Star and 18% of the Inquirer, according to PLDT President Napoleon Nazareno.

In May, MediaQuest director Ray C. Espinosa said they have been evaluating several funding options for BusinessWorld, including acquiring new shares.

The extent of this investment option will depend on the funding requirements of BusinessWorld for 2013 and 2014, Espinosa said.

He said that this may have to be done in combination with the purchase of shares held by the BusinessWorld’s retirement fund in order for it to have money for its retirement liabilities.

When asked at the March 6 press briefing why PLDT is looking to invest in print media, Pangilinan said, “The Philippines is not quite there in terms of the US where the print industry and has been under pressure and some of them have gone extinct. Here, it will survive in some shape and form.” – Rappler.com