THE owner of the BusinessMirror is expanding his media assets through the acquisition of a former state-led broadcasting company, marking the foray of one of the country’s most prolific investors into the television landscape.
Philippine Business Daily Mirror Publishing Inc. owner Ambassador Antonio L. Cabangon Chua is taking control of Radio Philippines Network Inc. (RPN9) starting September, as he acquires the 34-percent stake of Solar Television Network Inc. in the former government channel founded by the Benedicto family.
BusinessMirror President Benjamin V. Ramos said the former ambassador to Lao PDR is acquiring the significant minority stake in his personal capacity, not through any unit of the ALC Group of Companies, a diversified firm that has interests in media, banking, car dealership, insurance and real-estate businesses, among others.
“We have acquired the share of the Tiengs through Solar, which has a 34-percent stake in RPN9. We were then elected as directors, and Ambassador Cabangon Chua will be elected as chairman in the next board meeting slated on September 1,” Ramos said in an interview, clarifying online and print reports that surfaced on Wednesday night.
There are nine board members in the former state-owned network: three from Solar, another three from the Benedicto Group, two from the government and a private individual. Hence, the acquisition allows the group of the former ambassador to appoint three members to the board.
“The discussions started early this year and we have come to an agreement as to the payments. The next step there is to plan on how to integrate the news organizations [of Cabangon Chua] to the new acquisition,” Ramos explained, refusing to divulge the terms of the transaction.
He added that the whole ALC Group of Companies will be involved in forming a master plan for RPN9.
“We want them to also come up with inputs on how they could make synergies with the acquisition,” he pointed out.
The new network will not be competing head on with major TV stations such as ABS-CBN Corp. and GMA Network Inc. Instead, it will create its own market that will focus on business reporting.
“We will create our own niche, that will focus more on the other side of news; say, concentrate more on business and economy, more on the orientation on the business side,” Ramos said. “Since, we are in the business side of reporting, we will strengthen that aspect.”
RPN9 is slated to be rebranded anew as Aliw Channel, pending the approval of the board. Aliw Broadcasting Corp., which operates DWIZ 882 AM and 97.9 Natural FM, is the radio network of the media empire of Cabangon Chua.
“We expect to have a grand re-launch hopefully at the latter part of this year, if not the first quarter next year,” Ramos noted.
After the buyout of the Tiengs’ shareholding in the broadcasting company, the composition of the network’s ownership will be as follows: Cabangon Chua with 34 percent, Far Eastern Managers and Investors Inc. of the Benedictos with 32 percent, the government with 20 percent, and shares held by private individuals with 14 percent.
“We are really looking forward to working closely with the other shareholders of the network,” Cabangon Chua said. Ramos admitted that the investment in the television network is risky, as the profitability of the broadcasting company is still questionable.
“Right now, it’s not profitable. Now this becomes a challenge for us, and Ambassador likes to take on challenges. We will have to find the right formula on how to make a profit out of the network,” he stressed.
The acquisition calls for the ceding of the Solar brand and logo. Solar News TV will also forego of its name while the change in its corporate entity will take place before the end of 2014.
“The Tiengs already have their own Solar Entertainment channels. Maybe they want to concentrate on that aspect of the television business,” Ramos explained, replying to a question on why the Tieng family decided to sell its stake in RPN9.
Earlier this year, Aliw Broadcasting and RPN9 entered into an agreement where some of DWIZ’s radio programs will air over the 14 RPN AM stations nationwide.
This enabled RPN9 to obtain credible programming at no additional cost and provide opportunities for selling commercial spots for the DWIZ programs. Aliw was able to expand its audience reach by gaining access to RPN’s provincial stations, making DWIZ’s program more attractive to Manila-based national advertisers.
“I’m really excited about how we can leverage our existing media infrastructure and organization with that of Solar TV Network, which is the main content provider of RPN9,” Cabangon Chua stressed.
EXCLUSIVE | BusinessMirror owner acquires majority stake in RPN9
MANILA - The owner of Business Mirror is now the chairman of RPN9 after acquiring a
majority stake in what used to be a state-led broadcasting firm.
majority stake in what used to be a state-led broadcasting firm.
Sources told Interaksyon.com that Philippine Business Daily Mirror Publishing Inc
owner Antonio Cabangon-Chua bought the entire stake of Solar Entertainment Corp
president Wilson Tieng yesterday night. Solar will be renamed Aliw Channel, after
Aliw Broadcasting Corp, a radio network that Cabangon-Chua also owns.
owner Antonio Cabangon-Chua bought the entire stake of Solar Entertainment Corp
president Wilson Tieng yesterday night. Solar will be renamed Aliw Channel, after
Aliw Broadcasting Corp, a radio network that Cabangon-Chua also owns.
BusinessMirror is one of two business daily broadsheets in the Philippines, the other
being BusinessWorld.
being BusinessWorld.
Tieng told Interaksyon.com that Cabangon-Chua is now the chairman of
Radio Philippine Network (RPN) Inc.
Radio Philippine Network (RPN) Inc.
Tieng said he is not in a position to disclose details because of the "non-disclosure agreement"
between the two parties, but admitted that discussions were ongoing
for the sale of his stake in Solar.
between the two parties, but admitted that discussions were ongoing
for the sale of his stake in Solar.
Sought for comment, RPN acting president Robert Rivera told
that the board is holding a meeting,
but refused to confirm if the agenda includes the buyout by Cabangon-Chua.
that the board is holding a meeting,
but refused to confirm if the agenda includes the buyout by Cabangon-Chua.
Solar owns 34 percent of RPN, with another 32 percent held by the Benedicto family’s
Far Eastern Managers and Investors Inc. The government holds 20 percent while
private individuals own the remaining 14 percent.
Far Eastern Managers and Investors Inc. The government holds 20 percent while
private individuals own the remaining 14 percent.
Solar Entertainment is engaged in the acquisition, syndication, distribution and
promotion of world-class programs and formats, in partnership with
major international studios and content producers.
promotion of world-class programs and formats, in partnership with
major international studios and content producers.
It also produces localized franchised programs as well as original local programs.
Its channels include ETC, 2nd Avenue, Jack TV, Jack City, Solar Sports, Basketball TV,
and NBA Premium TV, among others.
Its channels include ETC, 2nd Avenue, Jack TV, Jack City, Solar Sports, Basketball TV,
and NBA Premium TV, among others.
To recall, San Miguel Corp president Ramon S. Ang had expressed
interest in acquiring a controlling stake in Solar. He however has since invested in
GMA Network Inc.
interest in acquiring a controlling stake in Solar. He however has since invested in
GMA Network Inc.
The Aquino administration plans to sell the government’s stake in
RPN 9, which operates seven TV stations and 11 radio stations.
RPN 9, which operates seven TV stations and 11 radio stations.
Cabangon-Chua buys Solar TV Network
CONTRARY TO earlier news reports, business interests identified with Antonio L. Cabangon-Chua bought the entire stake of the Tieng family in Solar TV Network, Inc. (STVN), a deal that gave his group a 34% interest in Radio Philippines Network, Inc. (RPN-9).
“It is not the 34% that Mr. Chua bought, it is Solar TV Network. We just acquired the 34% of RPN-9 because Solar TV owns it,” Benjamin V. Ramos, president of Business Mirror, one of Mr. Cabangon-Chua’s companies, clarified via phone interview yesterday.
Through the acquisition, Mr. Cabangon-Chua -- who has interests in print and radio including the daily business newspaper Business Mirror, tabloid Pilipino Mirror, and Aliw Broadcasting Corp. -- will rebrand Solar News Channel to 9TVNetwork effective Aug. 23. Mr. Cabangon-Chua will also serve as the new chairman of STVN.
Solar Entertainment Corp. -- which produces franchised and original local programs including ETC, 2nd Avenue, Jack TV, Jack City, Solar Sports, Basketball TV, and NBA Premium TV -- remains with Wilson Y. Tieng, Mr. Ramos explained.
He added: “Cabangon-Chua and I were also elected into the Board of Directors of RPN-9, as Mr. Tieng and [RPN Acting President Robert T.] Rivera have resigned. These things, however, will be formalized in the next board meeting on Sept. 1.”
The agreement between Mr. Cabangon-Chua and Solar group also calls for giving up the Solar brand and logo. STVN will also forego the Solar name and the change in its corporate name will take place before the end of the year, according to a statement released by the ALC Group, Mr. Cabangon-Chua’s umbrella company.
Mr. Ramos explained that the “rebranding of Solar News Channel to 9TVNetwork is just temporary so we can distinguish what’s for Tieng and what’s for Cabangon-Chua.”
Through the STVN acquisition, Mr. Cabangon-Chua now owns 34% of RPN, Inc. while the Presidential Communications Operations Office holds a 20% stake. The other 32% is held by the Benedicto-controlled Far Eastern Managers and Investors, Inc., while the 14% remains a private stock.
“I’m really excited about how we can leverage our existing media infrastructure and organization with that of STVN, which is the main content provider of RPN-9,” Mr. Cabangon-Chua said in the statement.
Earlier this year, Aliw Broadcasting and RPN-9 entered into an agreement where some of dwIZ’s radio programs were to air over the 14 RPN AM stations nationwide, according to the statement from ALC Group.
“This enabled RPN-9 to obtain credible programming at no additional cost and provide opportunities for selling commercial spots for the dwIZ programs; Aliw was able to expand its audience reach by gaining access to RPN’s provincial stations, making dwIZ’s program more attractive to Manila-based national advertisers,” the statement read.
Presidential Communications Operations Office Secretary Herminio B. Coloma said in early 2011 that it is looking to sell the government’s stake in RPN-9, which operates seven TV stations and 11 radio stations.
“We are looking forward to working closely with the other shareholders of the network which includes the Benedicto family and the Philippine government,” Mr. Cabangon-Chua said.
Sought for comment, Justino B. Calaycay, Jr., analyst at Accord Capital Equities Corp., said: “RPN-9 is looking at buyers for the station… this could be a move for the station to be the fourth player in the industry, next to ABS-CBN, GMA and TV5.”
The ALC Group has interests in the insurance, pre-need, auto, banking and finance, security, education, hotels, and real estate industries. -- Chrisee Jalyssa V. Dela Paz
Through the acquisition, Mr. Cabangon-Chua -- who has interests in print and radio including the daily business newspaper Business Mirror, tabloid Pilipino Mirror, and Aliw Broadcasting Corp. -- will rebrand Solar News Channel to 9TVNetwork effective Aug. 23. Mr. Cabangon-Chua will also serve as the new chairman of STVN.
Solar Entertainment Corp. -- which produces franchised and original local programs including ETC, 2nd Avenue, Jack TV, Jack City, Solar Sports, Basketball TV, and NBA Premium TV -- remains with Wilson Y. Tieng, Mr. Ramos explained.
He added: “Cabangon-Chua and I were also elected into the Board of Directors of RPN-9, as Mr. Tieng and [RPN Acting President Robert T.] Rivera have resigned. These things, however, will be formalized in the next board meeting on Sept. 1.”
The agreement between Mr. Cabangon-Chua and Solar group also calls for giving up the Solar brand and logo. STVN will also forego the Solar name and the change in its corporate name will take place before the end of the year, according to a statement released by the ALC Group, Mr. Cabangon-Chua’s umbrella company.
Mr. Ramos explained that the “rebranding of Solar News Channel to 9TVNetwork is just temporary so we can distinguish what’s for Tieng and what’s for Cabangon-Chua.”
Through the STVN acquisition, Mr. Cabangon-Chua now owns 34% of RPN, Inc. while the Presidential Communications Operations Office holds a 20% stake. The other 32% is held by the Benedicto-controlled Far Eastern Managers and Investors, Inc., while the 14% remains a private stock.
“I’m really excited about how we can leverage our existing media infrastructure and organization with that of STVN, which is the main content provider of RPN-9,” Mr. Cabangon-Chua said in the statement.
Earlier this year, Aliw Broadcasting and RPN-9 entered into an agreement where some of dwIZ’s radio programs were to air over the 14 RPN AM stations nationwide, according to the statement from ALC Group.
“This enabled RPN-9 to obtain credible programming at no additional cost and provide opportunities for selling commercial spots for the dwIZ programs; Aliw was able to expand its audience reach by gaining access to RPN’s provincial stations, making dwIZ’s program more attractive to Manila-based national advertisers,” the statement read.
Presidential Communications Operations Office Secretary Herminio B. Coloma said in early 2011 that it is looking to sell the government’s stake in RPN-9, which operates seven TV stations and 11 radio stations.
“We are looking forward to working closely with the other shareholders of the network which includes the Benedicto family and the Philippine government,” Mr. Cabangon-Chua said.
Sought for comment, Justino B. Calaycay, Jr., analyst at Accord Capital Equities Corp., said: “RPN-9 is looking at buyers for the station… this could be a move for the station to be the fourth player in the industry, next to ABS-CBN, GMA and TV5.”
The ALC Group has interests in the insurance, pre-need, auto, banking and finance, security, education, hotels, and real estate industries. -- Chrisee Jalyssa V. Dela Paz
