THE joint venture between Prime Media Holdings, Inc. and ABS-CBN Corp. will focus mainly on the content creation and production for radio and cable television (TV), a top official said.
“The objective of the joint venture is to provide accurate and balanced news and information to the country and public service,” Prime Media President Manolito A. Manalo said in a regulatory filing on Monday.
The content that will be produced by the joint venture will be distributed to radio, cable TV, and on other platforms including the stations under the Philippine Collective Media Co. (PCMC).
“The business model is similar to various local studios and production companies but the content we will produce is not for free TV broadcast,” he said.
Under the joint venture, PCMC will still be an independent organization and will only just be one of the distribution channels.
“ABS-CBN will not be involved in Prime’s or PCMC’s operations. The parties will create a joint venture company,” Mr. Manalo said.
Prime Media said that it has chosen radio as it has means to connect people, raise awareness, and influence positive social change via its wide reach, affordability, and accessibility.
“The partnership with ABS-CBN is, without a doubt, a great business opportunity. More importantly, it is an ideal example of corporate social responsibility; meant to address information gaps and provide public service,” Mr. Manalo said.
“For the shareholders of Prime, the transaction will enhance their shares’ value through the revenue stream expected to be generated from its equity investment in the joint venture,” he added.
On Monday, Prime Media shares climbed 29 centavos or 14.5% to P2.29 each, while ABS-CBN shares added four centavos or 0.57% to P7.09 apiece. — Justine Irish D. Tabile