ABS-CBN, TV5 terminate investment deal amid political pressure

ABS-CBN Corporation and TV5 Network Inc. have mutually agreed to terminate their investment deal where ABS-CBN was set to acquire a 34.99 percent stake in TV5, as well as a separate Convertible Note Agreement that would increase its stake to 49.92 percent.

Sky Vision Corporation, Lopez Inc., and Cignal Cable Corporation have also mutually agreed to terminate the Sale and Purchase Agreement and Debt Instruments Agreement concerning Cignal Cable's proposed acquisition of a 38.88 percent equity interest in Sky Cable Corporation.

Both ABS-CBN and TV5 confirmed that no transactions covered by the Investment Agreement and Convertible Note Agreement have been implemented.

The termination of the media investment deal was attributed to pressure from politicians and state regulators.

SAGIP Representative Rodante Marcoleta had previously sought a probe into the business deal, claiming TV5 would be violating its broadcast franchise terms.

The deal between Cignal and Sky Cable was linked to the ABS-CBN and TV5 investment deal, as proceeds from the share sale would have financed the Lopezes' transactions.