Converge, owned by Dennis Anthony Uy is planning to partner with Sky Cable Corporation. The reason? To help Sky Cable with its PHP 5 billion debt.
Previously, Sky Cable was set to be acquired by PLDT Inc., but the PHP 6.75 billion sale of Sky Cable’s broadband business and related assets was canceled. Both companies issued statements indicating that the decision to call off the deal was mutual.
Now, this new partnership will involve sharing network assets. The long-term goal is for Sky Cable to develop a rehabilitation plan to address its PHP 653 million net loss and PHP 4.53 billion in debts while adapting to the declining pay TV market.
Uy is reportedly advocating for a unified approach involving all stakeholders to extend Sky Cable’s operational lifespan. If successful, this partnership could lead to Sky Cable adopting a new, more cost-efficient business model.
Additionally, Sky Cable may utilize Converge’s fiber network and transition from cable to digital TV. Uy is also prepared to invest around PHP 2 billion to help Sky Cable settle some of its liabilities.
Do you think this is a smart move for Converge?
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