Despite 'good vibes' with TV5, GMA-7 says no deal yet
MANILA, Philippines - Despite the "good vibes" in the negotiations between the camps of TV5 and GMA-7, no deal has yet been ironed out between the 3rd and 2nd biggest media groups in the country.
This was the statement that listed GMA Network Inc. gave the stock exchange on Friday, June 15, the day after TV5 chair Manuel Pangilinan said talks have started this month and could possibly be completed by end of 2012.
"We confirm that discussions are on going, however, no agreement has been reached," GMA Network said.
"We humbly suggest that if the Exchange wants to verify/clarify the statements, they can do so with Mr. Pangilinan," it added.
Unlike GMA-7, which is listed in the stock exchange and required to disclose relevant and market-moving information, including a deal, TV5 is a private firm. TV5's affiliates, including Philippine Long Distance Telephone Co. (PLDT) and Metro Pacific Investments Corp (MPIC), are listed.
At the June 14 stockholders meeting of PLDT where Pangilinan is chair, he said talks to acquire a majority and controlling stake in GMA-7 are "moving positively," but deal price and size, as well as government's nod are needed to complete it.
Pangilinan said the deal price being discussed is "below P100 billion." Two of the three families that control GMA-7 had said they are willing to sell if "the price is right."
Pangilinan also explained to the PLDT shareholders and investors that they need a media company in their business portfolio since "telecommunications will soon be obsolete and social media is the future."
Among those that feed social media activities are entertainment and news content, which both GMA-7 and TV5 have. - Rappler.com