Sky-high debt a major factor in aborted cable TV merger

It was a ‘til debt do us part’ of sorts that caused the collapse of talks between telco giant PLDT Inc. and Sky Cable Corp.’s parent firm ABS-CBN, industry sources said.

- IRIS GONZALES

Pangilinan-led PLDT was supposed to acquire the Lopezes’ Sky Cable in a P6.75-billion package but talks fell through as announced by both groups last week.

Apparently, both parties could not agree up to the last minute on the terms related to the debt that the buyer had to absorb vis-a-vis the acquisition price of P6.75 billion.

Sky Cable, sources said, had debts of roughly P13 billion which PLDT, as the buyer, would have to absorb as part of the deal.

While PLDT was willing to absorb the debt, both parties could not agree on the terms of the total buyout valuation, in relation to the debt.