Despondency has veiled the existence of ABS-CBN Corporation since Solicitor General Jose Calida expressed his disenchantment with the media giant.
This recent development involved the government official wanting the franchise of the network canceled via a quo warranto appeal.
Calida said that the basis of his petition is the illegal use of ABS-CBN Corporation of Philippine Depositary Receipts or PDRs for capital-raising purposes.
He also questioned the pay-per-view offerings and corporate arrangement of the Quezon City-based entertainment and media firm.
Supporters of the possible ABS-CBN Corporation shutdown like Carlos Dominguez III witness an improvement in perception.
The secretary of the Department of Finance said that this event would happen if the government proves its accusations directed against the famous media company as correct.
On the other hand, individuals concerned with the repercussions of the possible shutdown of the ABS-CBN Corporation have expressed their sentiments.
Carlo Katigbak is the chief executive officer of the media giant. He remarked that, if the popular network closes, other reliant sectors and advertisers would feel the pang.
Ernesto Pernia, who serves as a socioeconomic planning secretary, had also relayed that the ongoing events concerning the broadcasting firm might impact the investors’ confidence.
As for the existence of the ABS-CBN Corporation in the Philippine stock market, its stock price has also felt the sharp jabs that the recent events caused.
This happening had commenced since the term of President Rodrigo Duterte started in 2016.
The stock price of the media behemoth’s shares was approximately P60 apiece in recent years.
Nevertheless, today, the shares of the firm at the Philippine Stock Exchange are available for trading from P16 to P20.
Johannes Benjamin Bernabe is a commissioner at the Philippine Competition Commission (PCC).
He warned that, if the Lopez-led media group goes off the air, its rival GMA Network, Incorporated would benefit.
Bernabe explained that this competitor company would eat up an estimated 40 to 55 percent of the aggregate market share.
He affirmed that this scenario is likely to happen if the worst-case situation happens to ABS-CBN Corporation.
Philippine digital news website Rappler reported that the PCC supports having more companies in the broadcasting market.
This setup offers consumers more choices, as per the PCC. Bernabe also cited that having more options would diminish the costs for other dependent sectors.
Among these industries are manufacturing and advertising, he said.
The PCC official mentioned that innovation and competition are always auspicious for consumers.
Bernabe explained that, through them, the customers would get better quality in terms of service.
On Monday, February 24, 2020, GMA Network, Incorporated (PSE: GMA7) closed at P5.39 per share, down by 0.01 or 0.19 percent.
The total turnover value reached P1,524,721.00. The 52-week high of GMA Network is at P5.98.
Meanwhile, the Philippine Stock Exchange recorded its 52-week low at P5.10.
As for ABS-CBN Corporation (PSE: ABS), it closed yesterday at P23.00 per share, up by 3.34 or 16.99 percent.
The total turnover value reached P93,987,806.00. The 52-week high of ABS-CBN Corporation is at P23.25, while its 52-week low is at P14.80.
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