News article from Inquirer.net by Doris C. Dumlao
Manny V. Pangilinan, after acquiring Sun Cellular, is now eyeing one of the country’s leading television networks, GMA Networks, Inc. The controlling stockholders’ share is at P52.5B which means that anyone who will be able to acquire these will have larger voting rights than the others, making him the major stockholder. To show his eagerness in buying GMA 7, MVP has started to make his aggressive moves by organizing bank finance to prepare for the prospective buyout, Mediaquest Holdings Inc. starting to prepare to issue Philippine depositary receipts to PLDT as well as the expected offer of MVP to buy the shares of the minority shareholders. MVP also reiterated that his group is willing to pay in cash.
This issue enables the researchers to formulate hypothesis about its effects in the future based on the given information and data. Combining the viewership of GMA7 and TV5 will capture approximately more than 50% of the TV audience placing these two corporations at the top spot. This will also allow merged companies to have greater monopoly power thereby controlling and lessening its advertising rate. Once this happens, it is expected that more advertisers will come to them thus affecting the sales of other networks especially ABS CBN. Also, the group sees this as a strategic move by MVP to have PLDT, Channels 5, 7, 11 and 13 as well as Meralco under one corporate umbrella to be able to cut down his expenses in advertising these corporations while at the same time having bigger sales than the previous years.