ABS-CBN gets first P2 billion of P6-billion lifeline
MANILA, Philippines – ABS-CBN Corporation (ABS-CBN) has received P2 billion from investors for its P6-billion rescue package, newly disclosed transaction documents show, giving the loss-making media company some cash even as the broader recapitalization still works its way through regulatory approvals.
The P2 billion is not a separate investment on top of the P6-billion rescue package disclosed last August 13, but part of the same equity infusion that former chairman Eugenio “Gabby” Lopez III had publicly led and championed.
Of the amount already received, P1.5 billion came from private investment firm I&C Holdings Corp., which had committed P3.5 billion in total. Crème Investment Corporation and Mantes Corporation – both Lopez family investment companies – each deposited P100 million of their P766.67-million subscriptions, while Lopez Inc. paid its full P300-million subscription. No advance payment was disclosed for Presta Holdings Company Inc., another Lopez family investment company which has committed P666.67 million.
The disclosed payments mean at least one-third of the P6-billion rescue package had already been received by ABS-CBN as of the August 12 agreements.
ABS-CBN still needs approval to increase its authorized capital stock from P1.5 billion to P4.5 billion, creating enough shares for investors subscribing to about 1.64 billion new common shares at P3.65 each. Stockholders are scheduled to vote on September 30, after which Securities and Exchange Commission (SEC) approval will still be required.
The media giant’s timetable targets SEC approvals in early November, with the transaction expected to close afterward, roughly six to eight weeks from filing, although the dates may still change.
Where will the money go?
The latest filing gives some insight into how much of the P6 billion will actually fund ABS-CBN’s shaky future, and how much will be used to clean up its heavy past.
ABS-CBN said the proceeds may be used for working capital, settlement of past-due liabilities, reduction of outstanding bank debt, and other general corporate purposes. I&C’s term sheet is more specific, saying its P3.5-billion investment is for working capital. ABS-CBN has not disclosed how the remaining P2.5 billion will be divided among its other needs.
Recall that ABS-CBN is still struggling financially and has yet to fix its bottom line. Content production and distribution accounted for about 84% of ABS-CBN’s P6.88-billion revenue in the first half of 2026, up from roughly 77% a year earlier. But the company’s net loss more than doubled to P1.83 billion, as a roughly P1.4-billion decline in revenue overwhelmed P482 million in cost reductions.
In other words, ABS-CBN has largely completed its transition away from being a traditional broadcaster, but it has yet to prove that the content-led model can consistently make money.
There are some signs of improvement beneath the headline losses. Excluding political advertising and other one-off items, ABS-CBN said recurring EBITDA in its content business improved 2%, while its recurring net loss narrowed 1%. – Rappler.com
