ABS-CBN Corp. is entering into a joint venture agreement with Prime Media Holdings Inc. to produce various programs that will be supplied to broadcasters and third-party platforms.
In disclosures to the stock exchange, the Lopez-led company said on Tuesday it will take a minority stake in the joint venture, while its partner will own 51 percent of the joint venture corporation.
This deal is aimed at cushioning the effect of ABS-CBN’s decision to cease the operations of its TeleRadyo program effective June 30, after incurring financial losses since 2020.
“This gives some of our former personnel a chance to find job opportunities. It is also a way to continue providing accurate and balanced news and information to the country,” the disclosure read.
Immediately upon signing of the agreement, Prime Media and ABS-CBN will apply with the Securities and Exchange Commission for the incorporation of the joint venture company with an initial authorized capital stock of P100 million and a paid-in capital of P40 million.
The deal’s primary purpose is for the development, production, and financing of content, programs, and shows for distribution by other broadcast networks, channels, or platforms, locally and internationally.
“ABS-CBN seeks to expand its business segments and streams of revenue by securing strategic partnerships for content development, production, and distribution. Given the foregoing, ABS-CBN entered into this joint venture agreement for content development, production, and financing with Prime Media,” the disclosure read.
Prime Media is a publicly listed holding company that seeks to venture into businesses related to media and entertainment.
“This will expand Prime Media’s business segments and provide streams of revenue such as equity investment and share in future projects,” Prime Media said in a separate disclosure.