Media giant ABS-CBN Corporation announced on Thursday the cancellation of the sale of its interest in Sky Cable Corp to PLDT Inc, the Philippines' largest fully integrated telco company.
This decision, as stated in a disclosure to the stock exchange, was "mutually decided by both parties," marking a significant shift in the anticipated transaction.
Mutual Decision Between ABS-CBN, PLDT
"ABS-CBN Corporation and PLDT have mutually decided not to proceed with the sale of Sky Cable to PLDT under the Sale and Purchase Agreement signed by and among the parties in March 2023," ABS-CBN Corporation stated in a press release.
PLDT Inc. also released a statement echoing the announcement made by ABS-CBN Corporation regarding the cancellation of the Sky Cable sale. In their press release, PLDT emphasized the mutual decision between the two parties not to proceed with the transaction.
Meanwhile, Sky Cable, the subsidiary of ABS-CBN, reassured its subscribers that despite the cancellation of the sale, its cable TV service will continue beyond February 26, 2024.
In a statement released following the announcement, Sky Cable affirmed, "We remain committed to providing the same level of customer experience and service for both our cable and internet services."
The proposed sale, initially valued at $123 million, aimed to see PLDT acquiring 100% of Sky's outstanding capital stock, worth 1.3 billion common shares.
With this latest development, the plans for the acquisition have been put on hold, and no additional explanation or alternative strategy has been provided. This marks the second time that the parties involved have withdrawn from a deal involving Sky Cable.
Fallout Amid Regulatory Approval
The cancellation of the sale comes amidst a backdrop of regulatory approvals and shifting industry dynamics. Just last month, the Philippine Competition Commission had approved the transaction, setting the stage for what was expected to be a transformative acquisition in the telecom sector.
PLDT, known for its extensive telecommunications and digital services across the Philippines, had expressed strategic interest in the acquisition. The integration of Sky Cable into its portfolio was anticipated to enhance broadband connectivity and expand digital infrastructure, aligning with the government's push for nationwide digitalization.
ABS-CBN, once the Philippines' largest broadcast group, had been diversifying its focus following the loss of its TV licenses in 2020.
This loss, attributed to political tensions and regulatory decisions during the presidency of Rodrigo Duterte, prompted ABS-CBN to pivot towards content production and distribution through streaming platforms and social media.
As both ABS-CBN and PLDT recalibrate their strategies in response to this development, the industry awaits further updates on their future plans and potential implications for subscribers and stakeholders alike.
For now, Sky Cable subscribers can rest assured that their cable TV service will continue uninterrupted, as the company reaffirms its commitment to delivering quality services amidst the evolving landscape of the media and telecommunications sectors.
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