The termination of the two networks’ investment arrangement has been formally confirmed by TV5 and ABS-CBN.

Since last June, there have been speculations of the two TV networks working together. The negotiations were still going on, according to TV5 Chairman Manny V. Pangilinan, at the time.

After the rumors spread, reports of the deal’s conclusion appeared. On August 10, 2022, the Investment Agreement was concluded.

However, the ABS-CBN TV5 transaction was contested by the National Telecommunications Commission (NTC) and other agencies, notably Rep. Rodante Marcoleta of the Sagip party list. The agreement specified that TV5’s 34.99% equity interest will be acquired by ABS-CBN.

In a statement issued by ABS-CBN on September 1, it was claimed that both sides had formally decided to terminate the agreement. On August 24, the TV networks made a joint statement stating that they “agreed to a pause in their closing preparations.”

A Memorandum of Agreement served as the official document used to end the agreement. According to the media company, “The Parties confirmed that they have not implemented any of the transactions covered by the Investment Agreement and the Convertible Note Agreement.”

Here’s the statement.

Sale, Lease, Transfer, Grant of Usufruct, or Assignment of Franchise.— The grantee shall not sell, lease, transfer, grant the usufruct of, nor assign this franchise or the rights and privileges acquired thereunder to any person, firm, company, corporation or other commercial or legal entity, nor merge with any other corporation or entity, nor shall transfer the controlling interest of the grantee, simultaneously or contemporaneously, to any person, firm, company, corporation, or entity without the prior approval of the Congress of the Philippines. Congress shall be informed of any sale, lease, transfer, grant of usufruct, or assignment of franchise or the rights and privileges acquired thereunder, or of the merger or transfer of the controlling interest of the grantee, within sixty (60) days after the completion of the said transaction. Failure to report to Congress such change of ownership shall render the franchise ipso facto revoked. Any person or entity to which this franchise is sold, transferred, or assigned shall be subject to the same conditions, terms, restrictions, and limitations of this Act.