ABS-CBN Corp. on Tuesday announced the closure of one of its news channels but has formed a joint venture with Prime Media Holdings Inc. of the Romualdez family to produce various content and programs.
The Lopez-led media and entertainment company said TeleRadyo has been losing money since 2020 and the program can no longer sustain its operations.
“ABS-CBN is left with no choice but to cease the operations of TeleRadyo effective June 30, 2023 to prevent further business losses,” it said.
“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,” ABS-CBN said.
The company, however, will continue providing news to the public through a joint venture with Prime Media with their production of various programs that will be supplied to broadcasters and third party platforms, including thr Philippine Collectivemedia Corp.
Under the agreement, ABS-CBN has 49 percent equity with an initial subscription of 19.6 million shares for a total of P19.6 million and Prime Media has 51 percent equity and an initial subscription of 20.4 million shares or P20.4 million.
The initial authorized capital stock of the joint venture company amounts to P100 million consisting of 100 million common shares with par value of P1.
Upon incorporation, the board of directors shall be composed of nine members, with five appointed by Prime Media and four appointed by ABS-CBN.
ABS-CBN said the partnership with Prime Media will give its 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,” ABS-CBN said.
