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ABS-CBN's share prices down 30%, loses P3.8B in market value


ABS-CBN on Thursday lost over P3.8 billion in market capitalization after its share price closed at P10.36 each, down 30% from its last traded price of P14.78 on July 10.

The Philippine Stock Exchange lifted the suspension on the trading of ABS-CBN's shares after it disclosed its plans after a House committee denied its application for a legislative franchise.

The media company lost P3.809 billion in market capitalization.

The network is now valued at P8,930,029,588.48 from its previous market value of P12,739,945,687.04 on July 10.

 

 

 

 

 

The company said it will continue to operate in other businesses that do not require a legislative franchise, such as, international licensing and distribution, digital and cable businesses, as well as, continue with the syndication of content through various streaming services.

To recall, the PSE suspended trading of the shares of ABS-CBN in light of the congressional denial of its franchise bid. 

On July 10, the House Committee on Legislative Franchises voted to deny the franchise application of ABS-CBN. 

The panel adopted the Technical Working Group’s (TWG) Committee Resolution recommending the denial of the network's franchise application through 70 yes votes, 11 no votes, and three who did not participate.

ABS-CBN went off air on May 5 after the National Telecommunications Commission issued a cease and desist against the network for lack of franchise.

With the plunge in its share price, ABS-CBN lost P3.809 billion in market capitalization.

Analysts earlier said that shares of embattled media giant ABS-CBN Corp. will suffer a blow after the lower chamber voted to deny its franchise application. 

Nevertheless, the company said it was “confident that any payments or financial obligations that may arise under its customary or usual business agreements are manageable and will not have a material adverse impact on ABS-CBN at this time.”-NB, GMA News

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