This deal has already started last year, in March 2023, when the telecom giant announced that it would buy out 100% of Sky Cable’s operations for ₱4.9043 ($0.08) per share, or 1.37 billion shares. PLDT would then plan to increase its customer base by around 300,000 cable subscribers and 350,000 broadband users with the proposed purchase.
According to past disclosures regarding this deal, Sky Cable has already been experiencing downward sales and decrease of demand for cable TV services. There has also been an NTC order to stop its cable broadcast services in 2020.
The acquisition of Sky Cable
The Manila Bulletin reports that PLDT plans to merge Sky Cable’s fiber internet operation with its own, while Cignal TV, a DTH satellite operator controlled by MediaQuest, a PLDT Group media partner, will take over the cable TV business.
Prior to approving the deal, the Philippine Competition Commission (PCC) evaluated the effects of the combination in five different markets: content distribution; over-the-top streaming service providers and Internet protocol television; distribution of pay television services; distribution of fixed broadband services; and media production.
In its review, PCC had to decide if the merger would limit competition in each sector, which is harmful on supplying excellent services to customers. On January 19, the competition regulator approved the deal. While the PCC approved the PLDT-Sky agreement, PLDT stressed that
"the proposed transaction is still subject to other closing conditions,"
which may result in changes to the final transaction. As to PLDT’s earlier statement, the agreement is expected to enhance the
"overall customer experience through the combined expertise, resources and capabilities of PLDT and Sky,"
What happens to Sky Cable now?
On the other side of the deal, Sky Cable continues to assure its consumers with a note on its website saying that the broadband and cable TV services will not be interrupted while waiting for all the needed regulatory process and approvals.
The said company also ensures assistance to cable TV subscribers during the transitioning and will have the option to move to Cignal TV or Cignal Cable.
Due to this, the Sky Cable has reportedly been focused more on their Sky Fiber services where they introduced a new add-on option of cable services. Unfortunately, even with this, Sky Cable is still struggling to catch up with competitors such as PLDT, Converge, and Globe.
This is not completely surprising as they are not offering pure Fiber internet services and could not provide speeds of more than 100Mbps since some of their area coverages are still using copper wirings.
Despite the formal announcement of PLDT’s acquisition of Sky Cable, some uncertainties remain, particularly over the future of Sky Cable’s services. To notify all of their subscribers, we expect that both parties will shortly issue a statement on the merger.
What do you think of this acquisition deal? Let us know in the comments! Follow us for more information about internet and cable TV service providers in the Philippines. You can also visit the official website of PLDT for more news and updates.
