BusinessWorld Online
ABS-CBN shares halted as TV giant loses franchise bid
The Philippine Stock Exchange (PSE) suspended trading of ABS-CBN Corp. shares after Congress denied its franchise bid, affecting 11,000 employees and causing up to P35 million in daily advertising losses.
Trading of the network's common shares and Philippine Depositary Receipts (PDRs) will resume one day after a full public disclosure.
A House of Representatives committee denied the network's franchise renewal application last Friday.
Shares of ABS-CBN have slumped 16% since May 5, closing 2.6% lower on Friday while its depositary shares sank 7.9%.
The non-renewal of the franchise will cause the stock to collapse, as the transition to digital is still a small part of the business and takes time to build up.
President Duterte had previously threatened to oppose the franchise renewal, citing alleged violations regarding political advertisements during the 2016 elections.
ABS-CBN president and CEO Carlo Katigbak had apologized for the unaired political ads, which President Duterte had accepted.
Topics in this story
Explore more stories about these topics.
🤖
This story was generated by AI to help you understand the key points. For more detailed coverage, please see the news articles from trusted media outlets below.
News Sources
See how different news organizations are covering this story. Below are the original articles from various Philippine news sources that contributed to this summary.
The House Committee on Legislative Franchises voted 70-11 to deny the franchise application of ABS-CBN, resulting in the media giant remaining off-air after its previous franchise expired.
+2
Read more →
The Philippine Stock Exchange (PSE) suspended trading of ABSCBN Corporation shares after its franchise renewal was denied by a Congressional committee.
Read more →
Senate Majority Leader Juan Miguel Zubiri expressed confidence that ABS-CBN's franchise would be renewed if the House of Representatives would allow its members to vote according to their conscience.
Read more →
President Rodrigo Duterte has stated he will not interfere with the franchise renewal of ABS-CBN Corp. and will leave the decision to lawmakers.
+1
Read more →
Supporters of ABS-CBN held a noise barrage outside the network's premises in Quezon City on Sunday to protest the denial of its franchise renewal.
Read more →