PLDT considering purchase of gov't TV network
Posted: 2:39 AM Mar. 03, 2006
XFN-Asia
PHILIPPINE Long Distance Telephone Co. (PLDT) is studying a plan to buy one of two television networks that the government has put up for sale, PLDT chairman Manuel Pangilinan said.
"We've been invited to look at these opportunities and we're looking at it," said Pangilinan in an interview with ANC, a cable TV news channel. "But I don't think we've made any decision to take the plunge."
He was referring to Radio Philippines Network (RPN) and International Broadcasting Corp. (IBC), which the government sequestered in the late 1980s and is now trying to privatize.
"Our impression is that it requires a lot of investments in infrastructure," Pangilinan said. "We're not certain if it's best to just buy the assets rather than the company itself, given the history of these companies."
RPN owns seven TV stations and 14 radio stations. IBC has about 17 TV stations and nine radio stations.
PLDT, the country's largest telecommunications company, has been looking for new areas of investment as the stellar revenue growth of its wireless phone business starts to cool.
Pangilinan said PLDT's financial position would allow it to pursue capital-intensive acquisitions.
The company has long been planning to acquire its own TV station.
In 2001, PLDT unit Mediaquest Holdings Inc. planned to buy 66.67 percent of GMA Network Inc. for 8.5 billion pesos, but negotiations ended after Mediaquest reduced its valuation to about 12 billion pesos from 14.58 billion pesos.
"PLDT financially was not in a position to make that investment," said Pangilinan," as opposed to now, when PLDT is much stronger to make such an investment. And indeed, were looking for new investments."
Pangilinan said that there were no new discussions about acquiring GMA Network.
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