Gabby Lopez: Man on a mission

After stepping down as chairman emeritus of ABS-CBN in September 2020, Gabby Lopez is stepping up to save the company he loves Who would have thought he’d be back in the game — and in the limelight — again? Two months after the House of Representatives during the Duterte administration rejected the franchise renewal of ABS-CBN on July 10, 2020, Eugenio “Gabby”Lopez III left his post as chairman emeritus and director of the Philippines’ biggest media network at the time. Not only that. He also resigned as director of other Lopez firms: ABS-CBN Holdings Corp., Sky Vision Corp., Sky Cable Corp., First Philippine Holdings Corp., First Gen Corp., and Rockwell Land Corp. His resignation was accepted. Perhaps for some who were still working for ABS-CBN at the time (including this writer), there was only one way to look at it: Gabby had taken responsibility for what had happened. Recall that around 5,000 people lost their jobs after the franchise was rejected. One could compare Gabby’s move to the Japanese behavior for taking responsibility, a sort of hara-kiri by a CEO. Many ABS-CBN employees had been frustrated (to say the least) over the company’s stance vis-a-vis Rodrigo Duterte and his administration: often silent, submissive, and accepting of whatever and whenever Duterte attacked the company, even if the then-president was wrong or inaccurate. (READ: TIMELINE: Duterte against ABS-CBN’s franchise renewal) Looking back, it was a stark contrast to the combative position taken by Rappler during the Duterte years when at least 12 cases were filed against the company and its chief Maria Ressa. Rappler and Ressa have since won all but one of those cases. (READ: SolGen asks SC to acquit Maria Ressa, Reynaldo Santos Jr. in cyber libel case) But perhaps, given the reality that by law, broadcast franchises in the Philippines are only granted by the House of Representatives, that was the only position a publicly listed company could take. (Disclosure: I had served as editor-in-chief of ABS-CBN’s news platform.) Or so Gabby thought. Gabby then hibernated for over five years in the US — until he quietly returned late last year as ABS-CBN’s financial crisis persisted following the loss of its lucrative franchise. The Lopez cousins’ feud erupted in March, and it was, at the root, all about ABS-CBN and how to save it. Part 1: Debt, discipline, and daring: Inside the Lopez Group’s high-risk betsPart 2: The Lopezes, presidents, and the cost of dissent Part 3: Lopez vs Lopez: The secrecy fight behind the Razon power deals Gabby wanted more money to save the company; cousin Federico “Piki” Lopez thought otherwise. As the dispute worsened, ABS-CBN issued a statement on April 15 on the “PR attacks” that 68 individuals had allegedly “received preferential treatment” in the “payout of their retirement benefits.” In a swipe at Piki Lopez’s argument that more money shouldn’t be poured into ABS-CBN, the statement cited a quote from ABS-CBN founder Eugenio “Kapitan Geny” Lopez: “Profit alone is not enough reason to go into business. But if we serve our people, then I think that our growth and success will follow. If we take care of our people, they will take care of us. That’s the kind of culture a company should have.” Fast forward to this week, the next chapter in the ABS-CBN saga is being written. After selling his family branch’s stake in the ultimate Lopez parent firm Lopez Inc. to San Miguel Corp. chairman Ramon Ang, Gabby has taken another step in his journey to make things right. In a statement on Tuesday, August 12, ABS-CBN said that that three branches of the Lopez family – Crème Investment Corporation (Crème), Mantes Corporation, and Presta Holdings Company Inc. – would raise P6 billion in new equity for the troubled media and entertainment firm. An investment holding company, I&C Holdings Corp., will subscribe to P3.5 billion worth of ABS-CBN shares, while Lopez Inc. will subscribe to an aditional P300 million. “ABS-CBN has built valuable brands, intellectual property, content and deep relationships with Filipino audiences in the Philippines and overseas. As the media industry continues to evolve, we believe these assets provide a strong foundation for the company to adapt, build a sustainable content-led business, and create long-term value,” I&C Holdings Corp. said. “This substantial investment is a vote of confidence in ABS-CBN,” said Mark Lopez, chairman of ABS-CBN Corporation. “It tells us there are people who continue to believe in the company and in our mission of being In the Service of the Filipino.” The P6 billion will be used to “strengthen ABS-CBN’s balance sheet while giving the company additional resources to execute its transformation into a more sustainable, content-led media and entertainment business.” Two days earlier or on Monday, August 11, after Crème Investment Corp., representing 25.7% or around one-fourth of Lopez Inc. was sold to Ramon Ang, Gabby said he sold for two reasons: “This dispute has not been good for any of us, or for the people who work in our companies. This allows us to take a step towards the restoration of family peace. The second is that it allows me to channel our family’s resources into businesses aligned with our personal mission. We will announce more on this in due time. Our families have known Ramon a long time. I am confident he will be a good partner to Lopez Inc.” Gabby’s move to make things right for ABS-CBN is back on track. As he emailed to Rappler on Sunday, April 9, “tomorrow (Monday) begins the end of the Lopez saga.” Years from now, when Gabby’s own biography is written, this chapter is going to stand out. – Rappler.com