So, the rumors that TV5 owner Manny V. Pangilinan is planning to buy GMA-7 are true. In this article from The Philippine Daily Inquirer, TV5 President and CEO Ray Espinosa revealed that they (TV5) are courting the GMA-7 executives for the acquisition of the Kapuso Network.
INQ:
Talks about the group of Manuel V. Pangilinan buying out broadcasting giant GMA Network Inc. have been so pervasive that many stock market pundits now believe there’s some truth to it. This all began when MVP was seen in a serious huddle with GMA chair Felipe Gozon at the wake for the latter’s mother in December, which was followed by a Twitter frenzy that erupted in the show-biz world.
What we’ve found out to be true is that MVP has indeed revived his long-running interest in the Kapuso network even if he has started his own Kapatid network. The latest offer reportedly ranges between P45 billion and a little over P50 billion, according to a source close to MVP. This was said to be lower than what was laid on the Kapuso table previously. (GMA 7 has a current market cap of P31 billion plus P8 billion in depository receipts). The source said that part of MVP’s long-term plan was to expand broadcasting coverage and such a consolidation would give MVP 60 percent or a lion’s share of the market, thereby attracting greater advertising revenues. (And with other mega-deals like Philippine Airlines, South Luzon Expressway and Skyway takeover lost to the “frenemy,” MVP certainly has a lot of energy to devote to a bigger broadcasting project.)
But while MVP has made some progress in reaching out to the Kapusos, it’s still uncertain whether a deal could finally be made this time around. There’s a triumvirate controlling the network (Gozon, Jimenez and Duavit) and the three must all consent if any deal is to take place and our sources say one of them remains lukewarm to the latest offer. Everything has a price tag but one of the musketeers still needs convincing, the sources confirm. And by the way, we heard this crown jewel has other suitors, too.—Doris C. Dumlao
Low morale
Despite improving ratings and a growing market share in advertising revenues, morale at Manny Pangilinan’s TV5 is low these days.
This may have something to do with TV5 president and CEO Ray C. Espinosa’s recent revelation of the company’s plans to acquire its bigger rival, GMA Network Inc.
“Kapag pumayag na sila. Nanliligaw pa tayo (If they agree. We are still courting them),” Espinosa reportedly told TV5 employees during a recent, highly confidential general meeting. This confirmed weeks of speculation of the possible merger, which will change the industry landscape. If it pushes through, the merger also means that Pangilinan will end up dominating the country’s media industry much sooner than he expected.
The meeting came after GMA Network chair Felipe Gozon himself said he was willing to sell his substantial stake in the company “at the right price.”
Of course, talks of a merger have TV5 employees, most of them hired just in the last two years, worried for their jobs. As in any merger, job cuts to reduce redundancies are inevitable.—Paolo Montecillo
In my personal opinion, there could be two reasons why Manny V. Pangilinan has an eye on GMA Network. First, maybe Mr. MVP wants to be the undisputed giant in media. He owns Smart Telecommunications, PLDT, TV5, AKTV, and small film outfits, aqcuiring GMA-7 would add to his growing empire. And Second, MR. MVP is maybe a bit disappointed with TV5 and he's having a hard time managing and growing a TV Network, if he aqcuires GMA Network, he doesn't have to work harder because GMA-7 have already been shaped into a media giant, all he has to do is to maintain.