Sale of Sky Cable to PLDT canceled

Multimedia conglomerate ABS-CBN Corp.’s sale of Sky Cable to Pangilinan-led PLDT Inc. is no longer pushing through.

In separate disclosures to the Philippine Stock Exchange on Thursday, ABS-CBN and PLDT announced that they “jointly decided not to proceed with the Sky Cable transaction.”

ABS-CBN’s sale of its broadband business under Sky Cable to PLDT already secured the approval of the country's anti-trust watchdog for the transaction.

Sky even announced it will have its final broadcast and sign-off on February 26, 2024, while its fiber internet services will continue under a new owner.

Both parties, however, canceled the transaction under a Sale and Purchase Agreement signed by and among the parties in March 2023.

Under a sale and purchase agreement entered into in March 2023, PLDT agreed to acquire 100% of Sky Cable's 1.38 billion outstanding capital stock for P6.75 billion from three Lopez-led firms — Sky Vision Corp., ABS-CBN Corp., and Lopez Inc.

“Following this development, Sky Cable is pleased to announce that its cable TV service will continue, assuring its subscribers that they can maintain their subscriptions. Meanwhile, Sky's internet broadband service, SKYFiber remains unaffected,” ABS-CBN said.

The parties earlier explained that Sky Cable’s cable and pay television services would be closed down in preparation for the transaction. Sky Cable will then be left exclusively with its broadband business.

PLDT last year said the acquisition would benefit broadband subscribers of the two companies, as this will boost the coverage of their offerings and services, particularly in remote areas.

The telecommunications firm in 2020 said it put in an offer to acquire Sky Cable, as it was encouraged by Bayanihan Act 2, which exempted mergers and acquisitions valued below P50 billion from compulsory PCC notifications.

It dropped the bid, however, as it said a review by the firm and its legal council found that there was a risk of possible divestment on review starting in the second year of the act.

Under its mandate, the PCC is tasked with implementing the national competition policy and enforcing the competition law that promotes and protects competitive markets.

To recall, the National Telecommunications Commission (NTC) in June 2020 ordered Sky Cable to stop its direct broadcast services under SkyDirect, citing the expiration of its legislative franchise. —VAL, GMA Integrated News