ABS-CBN Corporation is shutting down its TeleRadyo news channel even as it forges a joint venture with Prime Media Holdings Inc. of House Speaker Ferdinand Martin Romualdez to produce various programs for broadcast.
“TeleRadyo has been incurring financial losses since 2020. Since ABS-CBN can no longer sustain TeleRadyo’s operations, ABS-CBN is left with no choice but to cease the operations of TeleRadyo effective June 30, 2023 to prevent further business losses,” the multi-media firm said.
It added that, “The company is deeply saddened by this closure and having to part ways with the many passionate and committed people who have made Teleradyo an important source of news and information for many Filipinos.”
However, intending to find ways to continue providing news to the public, ABS-CBN is entering into a joint venture with Prime Media for content development, production and financing.
The new company will produce various programs, which will be supplied to broadcasters and other third party platforms including Romualdez’s Philippine Collectivemedia Corporation.
Under the agreement, ABS-CBN will have a 49 percent minority stake in the joint venture, and Prime Media Inc. will be the majority stakeholder with a 51 percent interest.
To be incorporated with the Securities and Exchange Commission, the joint venture will have an initial authorized capital of P100 million with P40 million paid up. ABS-CBN will contribute P19.6 million while Prime Media will add P20.4 million.
“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,” said ABS-CBN.
In a separate disclosure to the PSE, Prime Media said the agreement is in line with its strategic plan to venture into media and entertainment by securing partnerships for content development, production, and distribution to expand its business.
“Prime Media’s joint venture with ABS-CBN formalizes the agreement to develop, produce, and finance content, programs, and shows for distribution to local and international broadcast networks, channels, and platforms,” it said.
The firm added that, “This will expand Prime Media’s business segments and provide streams of revenue such as equity investment and share in future projects.”