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Sunday, July 15, 2012

4 Reasons Why a TV5 and GMA-7 Merge is Possible

TV5-GMA-7 Merger Photo
The Rumors about a possible merge between TV5 and GMA-7 won't die. It was reported back in February that TV5 CEO Manny V. Pangilinan is interested in buying GMA-7. (click here to read article) Although GMA-7 Chairman and CEO Felipe L. Gozon have denied the rumors on several occasions, the issue just simply won't die.

But There is an old saying that "when there is a smoke, there is a fire". The rumors doesn't die because the writers have basis and reliable source about the news. So I have here 4 reasons why a TV5 and GMA-7 merge is possible not actually a merge, should it happens, both companies will be under the ownership of Mr. MVP but I think they would still be one separate brands. So let's run down my list:

1. It's all about the money - One concrete reason why TV5 CEO Manny V. Pangilinan is close to acquiring the Kapuso Network is because he is rich. He has lots of money and his gonna use it to get what he wants. Consider how much money he throws out just to acquire huge stars from GMA-7 and ABS-CBN and how much he spent when he brought the highest paid NBA Players to play in the Philippines for a two night exhibition game, I'm sure that he won't have any problem putting out a huge bail to acquire GMA-7. And about GMA-7 executive Felipe L. Gozon statement that MVP needs to prepare P500 Billion to purchase GMA-7, everybody knows that's just a part of their arrogance, GMA-7 has been on a slump in terms of ratings and their not as huge as they think they are.

2. GMA-7 could use MVP's machinery - Manny V. Pangilinan is a pioneer in Telecommunications being the owner of the Philippine Long Distance Telephone Company(PLDT), Smart Telecommunications, Cignal etc. Should GMA-7 be sold to Manny V. Pangilinan, they could use those facilities to improve the day to day operations.

3. The Digital Television Transition in the Philippines - As ordered by the National Telecommunications Commission(NTC) the Philippines will cease analog broadcast and switch into digital broadcast sometime in 2015 or 2016, so far MVP is already prepared for this transition with the introduction of Cignal, a satellite dish that offers wide variety of digital channels. GMA-7 could also use this technology to prepare them for the digital television transition.

4. It happened before and it could happened again - Manny V. Pangilinan once attempted to purchase GMA-7, that was during year 2000. P14 Billion was the price tag of GMA-7 but the negotiation failed due to some circumstances. But now that MVP is in good shape, he might finally get it done.

So there you go, my 4 reasons why a TV5 and GMA-7 merge is possible. But there is no need to overreact because this are just my assumptions and personal opinions, should Manny V. Pangilinan be successful in purchasing GMA-7, that we'll have to watch for.


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