MANILA, Philippines – Telco giant PLDT is set to acquire Sky Cable Corporation’s broadband business for P6.75 billion, further expanding the former’s hold into the broadband space.

The transaction involves the acquisition by PLDT of 100% of Sky Cable’s total issued and outstanding capital stock consisting of 1.3 billion common shares for P4.90 apiece.

The deal also entails that Sky Cable’s paid TV and cable businesses will be terminated, according to stock exchange filings submitted on Thursday, March 16, by PLDT and Sky Cable’s majority shareholder, ABS-CBN.

ABS-CBN said that Sky Cable’s broadband and cable TV services will continue while awaiting regulatory approvals. Once the deal is given the green light, Sky Cable said it is “committed to working with all its cable TV subscribers to ensure a transition to their preferred service.”

ABS-CBN did not disclose what it would do to its cable channels, including flagship news channel ANC, after the deal.

This is not the first time that PLDT has set its eyes on Sky Cable. Recall that in 2020, PLDT chairman Manny Pangilinan sought to buy the Lopezes’ Sky Cable, but later pulled out over risks of antitrust regulators flagging monopoly issues.

PLDT has Cignal TV, which is also in the business of providing paid television.

In 2022, Cignal TV attempted to buy 38.9% of Sky Cable for P2.86 billion. This bid, however, was scrapped due to political pressure, alongside the landmark deal that was supposed to consolidate the media resources of ABS-CBN and TV5.

Strategic decision 

PLDT said that buying Sky Cable’s broadband business would benefit existing broadband subscribers of both PLDT and Sky Cable, as it would expand the coverage of offerings and services.

“The proposed transaction is aligned with PLDT’s mission to narrow the digital divide by expanding broadband connectivity, and supports the government’s push to expand the nation’s digital infrastructure,” PLDT said.

Meanwhile, ABS-CBN said that the sale is a “strategic decision” for Sky Cable to maintain its competitiveness.

“The proceeds from the sale of the shares of ABS-CBN and the settlement of Sky Vision’s obligations to ABS-CBN will be used by ABS-CBN to settle and fund its retirement obligations. The sale of the company’s ownership in Sky will also allow ABS-CBN to focus its resources on content creation,” ABS-CBN said. – Rappler.com