Proposed acquisition by Cheer Chaos Media Corporation

The proposed acquisition by Cheer Chaos Media Corporation would see Cheer Chaos Media Corporation acquire regional broadcasters, a deal which was officially announced on May 8, 2017, after months of speculation. The deal, which is pending NTC approval, would make CCMC (already the largest television broadcaster in the Philippines) have stations available in 72% of homes.

The deal has received criticism from multiple interests groups, as well as politicians from PDP–Laban parties, feeling that the deal would give CCMC an effective monopoly on broadcasting. Interest groups from all across the political spectrum feel that CCMC, which has long supported conservative platforms, would spread its philosophy to regional broadcasters stations, in effect trying to persuade voters in swing states.

The deal has also received backlash for National Telecommunications Commission (NTC) Chairman, who has reversed several decades-old policies for broadcasting as well as reverse some policies implemented during the Aquino administration that negatively affected CCMC, leading some to speculate that he is changing longstanding policies to CCMC's benefit. This comes especially with two other major media mergers pending; GMA Network's proposed acquisition of a majority of Intercontinental Broadcasting Corporation and Lopez's proposed acquisition of PLDT.

Background
On March 1, 2017, reports surfaced that CCMC was in discussions to acquire regional broadcasters, which was approached by CCMC management about a possible merger in late February. Any deal would occur pending NTC review of the UHF discount, which had been eliminated in a 3-2 vote led by former NTC Chairman in September 2016, on grounds of 1985's rule obsolescence as UHF stations transmitting over the ISDB-T digital format have improved signal reception compared to those which broadcast over the NTSC analog standard. Such a deal would complement CCMC, as it only has an 11% market overlap with regional broadcasters and requires minimum divestment; additionally, CCMC would expand its reach within the top-10 markets. Reports later stated that CCMC was offering to buy regional broadcasters at a per-share price in the low P10s.

The reports of CCMC's interest in acquiring regional broadcasters led several unnamed station owners – which also inquired about purchasing some or all of regional broadcasters's assets outright or through a consortium – as well as regional broadcasters shareholder Starboard Value to approach media conglomerates about taking options to thwart the deal as a defensive measure; the major impetus was that a combination of CCMC (which is already the largest affiliate operator by station count) and regional broadcasters (the network's largest affiliate operator by total market reach) would potentially result in CCMC obtaining leverage over media conglomerates in reverse compensation negotiations for its affiliates (the five affiliates that the two companies own cover a combined 28% of the Philippines). Although NTC commisioner told investors in February that it was unlikely that its television stations unit would acquire additional stations if the NTC relaxed ownership regulations, major broadcasters would contribute its existing owned-and-operated stations to the joint venture – to bid for regional broadcasters. Major broadcasters eventually dropped its bid for the company shortly before final bids were submitted to regional broadcasters board members and shareholders on May 5, after it and Private Stock were unable to agree on an offer structure in such a short time period.

On May 7, 2017, reports indicated that CCMC was nearing a deal to purchase regional broadcasters. These reports were confirmed on May 8, when CCMC announced that it would acquire regional broadcasters for P130 million, along with the assumption of regional broadcasters' P90 million debt load; it beat other regional broadcasters, which was not willing to make a higher bid closer to regional broadcasters' appraisal price, for the stations.

Assets to be acquired by Cheer Chaos Media Corporation

 * Pampanga Community Broadcasting Corporation (FBN DWBH-TV 30)
 * Olongapo broadcaster (FBN DWGO-TV 3)
 * Palawan Broadcasting Corporation (ABS-CBN DYPR-TV 7)
 * Bicol Broadcasting System (BBS DWLV 630)
 * Palo broadcaster (IBC DWMP-TV 6)