Stock price of Now Telecom (NOW) closed by 18.89% after the market digested the news the other day that it entered into a Memorandum of Agreement (MOA) with News and Entertainment Network Corporation (Newsnet) to acquire ownership on the Entertainment company. Prices closed at 1.07/share on todays trading.
“On 03 October 2022, the Board of Directors of NOW Corporation authorized the management to initiate negotiations with News and Entertainment Network Corporation (Newsnet) to acquire equity ownership in Newsnet, an interactive pay television and multimedia services company assigned with the coveted 26GHz spectrum. This is part of the NOW’s thrust to expand, consolidate and strengthen its core business, subject to applicable regulatory approval from regulatory agencies and government bodies.”
“Likewise, in the same meeting, the Board approved the execution of NOW Corporation, together with NOW Telecom Company, Inc., News and Entertainment Network Corporation, NOW Cable, Inc., and Asian Institute of Journalism and Communication, Inc. of the Memorandum of Agreement creating a common digital infrastructure for internal, private, and public sectors’ use, streamlining their operations, optimizing their network utilization, and leveraging on shared services and resources”
In order to deliver wire and wireless communications services, mobile telephony services, interactive pay television, and multimedia services, the Parties intend to upgrade the current fibre air fixed wireless access network using 26Ghz spectrum and the most recent technology. They also intend to increase the number of base stations in Metro Manila and the surrounding suburbs, with a target of at least 150 base stations.
“The Parties agree to expand the existing network on a nationwide basis through collaboration, joint venture, Built Operate Transfer Projects, Private-Public Partnership with local community organizations such as local government units, electric cooperatives, cable tv operators, internet service providers, broadcasters, real estate developers, state universities and colleges, and other community-based organizations, fiber air fixed wireless access network to next generation technology and expand the base stations nationwide.”`
“NOW Telecom may provide to Newsnet and NOW Cable technical management services, marketing services and customer, billing and collection services of the bundled services of the parties that utilize the Digital Infrastructure, except for the regulated equipment and services that Newsnet and NOW Cable need to provide to their respective companies as required by law in delivering interactive pay television and multimedia services”
The National Telecommunications Commission has granted NEWSNET permission to set up, run, and maintain a Local Multi-Point Distribution System in the 25.35GHz to 26.35GHz frequency band.