ABS-CBN Woes

If I remember it correctly, a TV personality told the viewers that 'it is better to have an abusive media rather that abusive government'. I might not agree with what he said but there is a time in our history that you would not pick the latter. 

ABS-CBN franchise would expire in 2020. Congress has enough time to discuss and decide whether to extend the franchise to another 25 years. There is a pending bill in congress (House Bill 4349) that was filed November of 2016 to give ABS a new breathe of life. But the fight with the President might be a big hurdle. Swindling is a serious crime specially if you are a company that are tasked to condemn it. It is much more serious when the President charged you as such.

No lawsuit has been filed yet, so, it is a battle of words for now. As the President is in the other end of the rope, surely, the effect would be felt by ABS investors. I think its share price would be going south for a couple of months. If I am holding ABS share I would be a little bit shaking right now. 

But I think, media giant like ABS would not just sit down and let the ball roll to them. They still have 3 years to bridge the gap with the President. They might get some tongue lashing, some shocking words from him but that would be ignorable compare to the the one thing they need from the President and the congress. 

It is really an exciting time for the country as the President is really bent on doing what he promised during the campaign.