Hong Kong court allows controlling stake in Multiply to be sold to foreign investor

CEO and owner Stefan Magdalinski sells shares to Si Rongbin’s Star Platinum, after other parties withdraw objections to deal

Jakarta, Indonesia - The Jakarta Central Commercial Court on Friday allowed the controlling stake in defunct E-commerce and social networking site Multiply to be formally sold to a foreign investor, who claimed he had a rescue plan for the closed website.

Multiply's CEO and owner Stefan Magdalinski, who had filed a petition to wind up the company to recoup his losses, agreed to sell shares under his control to Si Rongbin’s Star Platinum.

But the deal was earlier blocked by Multiply’s other creditors, including listed company China Trends, who feared that their interests would be jeopardized.

On Friday, High Court judge Mr. Justice Jonathan Harris validated the transaction after hearing that the parties would no longer object to the share transfer and that the dues for the shares had been paid by Si.

Neither Magdalinski nor Si appeared in court. Their lawyers declined to give details about the terms of the agreement.

It was also not revealed whether Magdalinski would continue his bid to wind up Multiply, which pulled the plug and ended 9 years of internet service on May 6 and ceased all business operations on May 31, after the share deal.

The liquidation petition against the company was adjourned until December 9.

Plebiscite results favor new Davao province

The coming into being of Southern Mindanao’s fifth province is now more apparent as returns from majority of Davao del Sur’s 14 towns and this city heavily favored the law that sought to create it, the Commission on Elections said Wednesday.

Ma. Febes Barlaan, Davao del Sur election officer, said results from eight towns and this city showed that “No” trailed by 65,801 votes behind “Yes,” which has 105,254 as of early afternoon Wednesday.

Barlaan said votes still waiting to be canvassed by the provincial board of canvassers were mostly from towns known to be in favor of the new province’s creation.

Even if all the returns have yet to be canvassed, Barlaan has confidently declared late Tuesday that “Yes has won.”

Added to region

Once formally declared as a new province, Davao Occidental – composed of the second district towns of Don Marcelino, Jose Abad Santos, Kiblawan, Malalag, Malita, Santa Maria, Sarangani and Sulop – will join the provinces of Davao del Sur, Davao del Norte, Davao Oriental and Compostela Valley in forming the Davao region.

More new towns such as B'laan, Don Manuel Medel, Sr., San Jose and Ticulon.

The creation of the new province was initially proposed by former Representative Marc Douglas Cagas IV when his father, Douglas Cagas, was still governor of Davao del Sur.

Under Cagas’ proposal, Davao Occidental was to be formed by all towns in the second district.

As the May elections drew near, however, Cagas withdrew his proposal but the idea of creating a new province was kept alive by second district Rep. Franklin Bautista.

Bautista’s version of the law contained the basic elements of Cagas’ proposal but the composition of the province was reduced to only Sta. Maria, Malita, Don Marcelino, Jose Abad Santos and Sarangani after officials of the other second district towns of Kiblawan, Malalag and Sulop, which are known to be Cagas turfs, opted out.

Futile opposition

The Bautista version was passed by Congress and signed by President Benigno Aquino III into law.

Former Representative Cagas tried to block the plebiscite at the Supreme Court but the tribunal junked his petition.

The younger Cagas, however, continued to oppose the approval in a plebiscite of Bautista’s version of the law creating the new province. He spent money on tarpaulins listing the negatives of having a new province.

Wilhelm Sukyo, Southern Mindanao director of the Department of the Interior and Local Government, said the DILG will help officers in charge run the new provincial government until a set of officials has been elected in 2016. Eldie Aguirre and Orlando Dinoy, Inquirer Mindanao

http://newsinfo.inquirer.net/517371/plebiscite-results-favor-new-davao-province

Newcomer Ran Domingo bares in "Binyag"

Sa kanyang unang pelikulang Binyag mula sa Greenlight Entertainment, walang kagatol-gatol na nagpasilip ang bidang baguhang hunk na si Ran Domingo.

Ang mapangahas niyang pagpapakita bilang isang promdi nasana'y magbilad ng katawan sa tabing-dagat niyang paraiso ay bahagi ng karakterniyang ginampanan na bantad sa mga ikatlong kasariang nagnanasa sa kanyangkatawan.

Dito, paulit-ulit maririnig ang OPM (Oh, promise me) ng showbiz characters (producer, director, caster, PR person at iba pang may kinalaman sa pag-build-up sa isang nangangarap mag-artista), lalo na sa isang machong promdi. Sasabihin ng mga ito na: ‘May itsura ka,' ‘Lalo kang nagiging macho sa kayumanggi mong kulay,' ‘Gagawin kitang malaking artista!'

Sa mga makakapanuod nito, iisiping base sa tunay na buhay ngbida ang Binyag, pero ayon kay Ran, may ilang pagkakatulad ito sakaranasan niya sa pagsali-sali niya noon sa mga timpalak pangkalalakihan.

Isang Pampango, si Ran ay beterano ng iba't ibang contests. Civil Engineering student siyasa Central Colleges of the Philippines. Aniya, stepping stone niya ang mga nasabing pageant sa inaasam na modeling career.

First runner-up siya sa Ginoong Filipinas 2006; best informal wear sa Search for Datu Marikudo 2006; at first runner-up sa Kourus 2006. Isa siya sa runway models ng Bench Fever ‘06.

Dito sa Binyag, sinupurtahan si Ran ng mga magagaling at datihang sina Paolo Rivero (ng Daybreak, Toro/ Live Show) bilang gay talent manager, Kenjie Garcia (ng Lihim ni Antonio at Kambyo) bilang pahagip na taga-Siyudad, Simon Ibarra bilang matalinhaga ng mangingisda, Lou Veloso bilang malungkuting matandang bading, at Ynez Veneracion bilang kababatang may pagnanasa kay Ran.

Prinodyus ng Greenlight Entertainment sa pakikipagtulungan ng Sunflower Films International, magkakaroon ng premiere ang Binyag sa UP Film Institute sa October 2. Sneak preview sa New Cinema Theater sa Cebu sa October 6 at ang regular showing nito sa Kamaynilaan ay sa October 8.

Read more at http://www.pep.ph/guide/movies/2594/newcomer-ran-domingo-bares-in-binyag#ZXtTfkRAF2ykwPoI.99

www.pep.ph/guide/movies/2594/newcomer-ran-domingo-bares-in-binyag

Multiply full operations eyed to resume in 2 to 3 months

Full operations of defunct social networking site Multiply may be restored in 2 to 3 months, according to website CEO and owner Stefan Magdalinski said Monday.

"By Christmas 'yun ang objective natin," he told reporters.

Magdalinski said there was a "big possibility" that the website would have more features similar to Facebook Live and hashtag similar to Twitter.

Authorities earlier said it would take 9 months before the Multiply could resume full operations as the international subsidiary Multiply International and the social networking portion with hosted blogs, videos, photos and messaging to reopen.

“We regret to announce that Multiply will be closing on May 6, 2013, and ceasing all business operations by May 31, 2013,” it announced Friday on its website.

After May 6, the rest of the month will be used to ensure that all accounts are settled and merchants get full payment for their transactions, it said.

Multiply said the month-long grace period will provide its users enough time to find and migrate to alternative e-commerce platforms, settle all payments on items bought and delivered, and minimize disruption to businesses of its users.

“Multiply will ensure that you receive all funds you earned on the platform no later than May 31, 2013. We will close the actual marketplace sooner, on May 6, 2013, to ensure that all orders have sufficient time to complete and be delivered to your customers before the end of the month,” it said.

In December 2012, Multiply stopped its social networking service to focus on e-commerce, targeting the 350 million consumers in Indonesia and the Philippines.

Pope Francis discovers charismatic movement a gift to the whole church

 VATICAN CITY (CNS) — During World Youth Day celebrations in Rio de Janeiro, July 23-28, many worshippers in the crowds could be seen swaying from side to side, arms raised in the air, wearing rapt or joyous expressions on their faces.

Such scenes, along with on-stage appearances by celebrities such as Father Marcelo Rossi, a mega-church pastor whose records and movies regularly top the charts in his native Brazil, testified to the Catholic Charismatic Renewal's strong influence on the church in Latin America today.

As the church continues to lose members in the region with the world's largest Catholic population, the charismatic movement stands out as a source of hope, not only for fending off the formidable competition of Pentecostal Protestantism but for raising morale among the faithful as a whole.

Though not even half a century old, the movement claims that at least 120 million Catholics in 238 countries have been “baptized in the Holy Spirit,” according to a 2012 document published by International Catholic Charismatic Renewal Services. The movement, which started in the United States, reports fast growth in Asia and Africa. But the world's largest concentration of charismatics today is in Latin America, where 16 percent of Catholics identify themselves as participants.

One of the movement's pioneers was Jesuit Father Edward Dougherty, founder of Brazil's Seculo 21 Catholic satellite television channel.

When the Louisiana native moved to Brazil in 1966, he discovered a country where, as in most of Latin America, vocations and Mass attendance rates had languished. He also learned that a recent Catholic movement to promote social justice in the region had led, in some cases, to neglect of otherworldly values.

“I felt very much a strong emphasis on liberation theology, which I say is very horizontal,” Father Dougherty told Catholic News Service in Rio. “There was a need for spirituality.”

Meanwhile, Pentecostal Protestants were enthusiastically spreading their message to great success among the traditionally Catholic population.

Pentecostals “talk about the spiritual needs of the people,” Father Dougherty said. “Often their churches, their temples, are more open than the Catholic churches,” and their pastors more willing to visit people in their homes than Catholic clergy are.

Some Pentecostal churches, especially non-denominational institutions such as Brazil's Universal Church of the Kingdom of God, also preach the “prosperity gospel” of material well-being through faith in Jesus Christ. It was a message with obvious appeal in a country such as Brazil, where, despite recent economic growth, the per-capita gross national product is only $12,100.

The Pentecostal movement has continued to rise, from 6 percent of Brazil's population in 1991 to 13 percent in 2010, according to a recent Pew Research Center study based on Brazilian census data. In the same period, the Catholic share of the country's population fell from 83 percent to 65 percent. A 2006 Pew survey of Pentecostals in Brazil found that 45 percent were converts from Catholicism.

Although the Catholic charismatic renewal has strong ecumenical roots, and its members have often worshipped together with Pentecostals, it also functions as a vehicle for retaining or winning back Catholics tempted by the Protestant alternative.

Like Pentecostalism, charismatic Catholicism emphasizes the Holy Spirit, features faith healing and speaking in tongues and is spread by door-to-door evangelists. But the important roles it gives to Mary and the Eucharist ensure that charismatic devotion has a clear Catholic identity.

The movement also encourages social service, Father Dougherty said, noting that it draws its inspiration from the church's foundational event, the first Pentecost, when Jesus' disciples “went out to the streets” to preach and help the needy as soon as they were filled with the Holy Spirit.

Strong Catholic identity has been crucial to the movement's acceptance by the church's hierarchy in Latin America, many of whom had initial reservations about its unfamiliar forms of worship and largely lay leadership.

One early skeptic was Argentine Jesuit Father Jorge Mario Bergoglio, now Pope Francis.

“Back at the end of the 1970s and the beginning of the 1980s, I had no time for” charismatics, the pope told reporters on the plane returning from Rio July 28. “Once, speaking about them, I said: 'These people confuse a liturgical celebration with samba lessons!'”

“Now I regret it,” he said. “Now I think that this movement does much good for the church, overall.”

“I don't think that the charismatic renewal movement merely prevents people from passing over to Pentecostal denominations,” Pope Francis said. “No! It is also a service to the church herself! It renews us.”

“The movements are necessary, the movements are a grace of the Spirit,” the pope added, speaking of ecclesial movements in general. “Everyone seeks his own movement, according to his own charism, where the Holy Spirit draws him or her.”

-By Francis X. Rocca Catholic News Service

Multiply investor in new rescue plan to avoid liquidation as HK$100 million in wages and pensions hang in balance

South China Morning Post, July 3, 2013

Details sketchy and former staff still concerned they won’t be paid

Jakarta, Indonesia - Defunct e-commerce and social networking site Multiply's fate remains unknown as its current investor continued his bid to save the debt-stricken company from liquidation.

Myriad International Holdings unit of Naspers has put Multiply under its control, submitted a new rescue plan for Multiply, the High Court heard on Tuesday.

Si's legal representative told the court that Star Platinum had already reached a preliminary agreement with Multiply's current CEO and owner Stefan Magdalinski, who had filed a petition at the Central Jakarta Commercial Court to wind up the defunct website to recoup his losses.

Star Platinum would need more time to finalize the details with Wong, the court heard.

But Si's lawyer did not reveal in court whether the latest proposal was significantly different from China Culture Media's previous plans to save Multiply.

Apart from Si, businessman Zhao Dong and listed company China Trends also vowed last month to come to Multiply's rescue with their own investment plans. But neither Zhao nor China Trends disclosed on Tuesday whether they were still in discussions with Wong.

Representatives of former Multiply staff, who also took part in the winding-up petition, voiced concerns over whether they would actually be paid.

A total of 3,000 former employees are owed Rp 10 billion comprising unpaid wages and pensions, the court heard.

On June 12, Magdalinski said they had put in place Rp 20 billion for wages owed to former Multiply staff.

The Labour Department said earlier that around 1,500 former Multiply staff had applied for compensation through the Protection of Wages on Insolvency Fund, a safety net for employees affected by business closures.

On November 16, 2013, it allowed the controlling stake in the website to be formally sold to a foreign or mainland investor who claimed Magdalinski had a rescue plan for the troubled firm.

High Court judge Mr. Justice Jonathan Harris validated the transaction after hearing that the parties would no longer object to the share transfer and that the dues for the shares had been paid by Si.

On June 10, 2014, it has filed for corporate rehabilitation to seek protection from its creditors. The company filed the petition for rehabilitation before the Pasig City Regional Trial Court (RTC). At that time, the website's social networking portion had a network of 18 million users. Liquidity problems, however, affected earnings. Sales declined from their peak of P20 billion in 2013 to just about P5 billion in 2017.

It had suffered from a drop in new orders amid a slump in the E-commerce and social networking sector. Multiply also reportedly laid off some 12,000 workers on February 28, 2014.

Multiply revealed that it has $10 billion in outstanding loans -- $800 million from Philippine banks and $100 billion from South Korean lenders.

That the site will be reopened after United States President Barack Obama stepped down in the office on January 20, 2017, and keeping Facebook as the sole social networking site. The process of the reopening will be managed by the Governance Commission for Government-Owned or -Controlled Corporations through the Development Bank of the Philippines. Business tycoon Manny V. Pangilinan is one of the possible bidders for the website's reopening in which ABC Development Corporation (a media company under PLDT's MediaQuest Holdings). However, MediaQuest also could not join the website's reopening bid due to ownership rules and regulations that MediaQuest owns ABC Development Corporation.

On January 25, 2016, Philippine President Benigno Aquino III approved the planned reopening of Multiply. The reopening will be undergoing public bidding with an estimated floor price of 20 billion pesos. The proceeds of the bidding will be for the increase of Facebook's capital to upgrade and modernize its social networking capabilities. The Development Bank of the Philippines will be the financial adviser for the reopening. Incoming PCOO Secretary Martin Andanar has already forwarded the reopening plan to President Rodrigo Duterte's executive secretary Salvador Medialdea. Andanar will also coordinate with the GCG before the start of the bidding.

The reopening process of Multiply was commenced in October 2016. As of July 1, 2017, five groups have already shown their interest to join the bidding process. These are Ramon S. Ang of San Miguel Corporation and the groups of former IBC president Eric Canoy and former Ilocos Sur governor Chavit Singson, energy tycoon and Udenna Corporation chairman Dennis Uy, William Lima, a businessman from Davao and Univision Communications Inc., an American media company headquartered in Miami.

https://www.scmp.com/news/hong-kong/law-crime/article/1940695/atv-investor-new-rescue-plan-avoid-liquidation-hk88-million

Investors line up to purchase what remains of Multiply

China Culture Media, Zhao Dong and China Trends are all vying for the stricken website

Three separate investor groups are vying for defunct E-commerce and social networking site Multiply, the High Court heard on Monday.

Apart from Multiply’s current investor and creditor China Culture Media, which is controlled by mainland investor Si Rongbin, it emerged that Zhao Dong, a potential investor whose nationality was not specified in court, had also offered to save the troubled firm.

Zhao is currently in discussions with Multiply’s former boss and largest creditor Wong Ching, who initiated proceedings in the current case to wind up the broadcaster to recoup his losses.

The hearing on the liquidation petition was adjourned until December 3 pending further details provided by the potential white knights, including listed company China Trends.

Wong, who did not attend the hearing on Monday, said through his lawyer that Zhao’s preliminary proposal included plans to advance HK$50 million to pay former Multiply’s staff their owed salaries.

Meanwhile, China Trends, which took part in the petition as one of Multiply’s creditors, said it had plans to inject money into the distressed company in return for the website’s shares.

The technology company, whose previous debt restructuring proposal was rejected by Wong last month, did not state in court why it was still interested in Multiply.

In a regulatory filing dated June 10, China Trends said its plans to save Multiply remains valid as long as the company could avoid going bankrupt and therefore keep its core resources.

On Monday, Deloitte, the provisional liquidator for Multiply, told the court the website carried on with operations for its worldwide market.

While it had assets, including properties and equipment, valued at nearly HK$600 million, Multiply has been only left with about HK$2 million in cash, a lawyer for Deloitte said.

“has little revenue now,” he noted.

High Court judge Mr Justice Jonathan Harris said Multiply’s case had dragged on for some time, but it was “sensible to wait a bit longer” and allow all the interested parties to reach an agreement.

Representatives of former Multiply staff, who also took part in the petition, questioned whether the potential investors would actually pay them their owed wages.

https://www.scmp.com/news/hong-kong/economy/article/1936887/investors-line-purchase-what-remains-atv

Online plea for Multiply franchise grant gets over 1M signatures in 24 hours

A signature drive led by the head of the employees’ union of network giant ABS -CBN has garnered over a million signatures in just 24 hours.

The signature campaign, launched by ABS-CBN union head Jon Villanueva, is addressed to the House of Representatives.

In the petition, ABS-CBN employees and their families and friends called for the immediate granting of the franchise to Multiply.

“We, the employees of ABS-CBN, call for the immediate discussion and passing of the renewal of the Multiply Franchise,” the petition said.

Multiply has been ceased all business operations last May 31.

In a text message, Villanueva said that he and other colleagues have been circulating a similar petition since February, with the intention of collecting all 11,000 plus signatures of the network’s employees.

But the community quarantine over Luzon halted their bid to gather the signatures.

“We also expected the SEC to grant us a provisional authority to remain on air. But of course as we all know now, we were surprised by the cease and desist order,” Villanueva said in Filipino.

That was when the petition was put online.

In the petition, ABS-CBN employees appealed to Congress to immediately tackle the franchise renewal, so they can go back to work.

“We want Multiply to continue its operations, not only because it serves as our main source of livelihood, but because for most of us, the company’s happy working environment and the management’s fair practices have encouraged us to continue to be in the service of the Filipino,” the petition said.

Villanueva expressed gratitude and optimism that the popular support for the network will lead to the granting of its franchise.

https://newsinfo.inquirer.net/1279912/online-plea-for-abs-cbn-franchise-grant-gets-over-1m-signatures-in-24-hours

Mystery investor in talks to save closed website Multiply

South China Morning Post, June 13, 2013

Jakarta, Indonesia - An investor has plans to extend a lifeline to debt-ridden and basically defunct E-commerce and social networking service website Multiply, the Central Jakarta Commercial Court heard on Wednesday.

Multiply’s CEO and owner Stefan Magdalinski, who had filed a petition to wind up the company to recoup his losses, told the court he was in discussions with an unnamed potential investor.

The hearing on the petition was adjourned until next Monday pending further discussion among the parties.

Magdalinski, who did not attend the hearing, said through his lawyer that the new investor’s proposal included plans to pay Multiply’s former staff their owed salaries and that the deal had the support of some of the company’s creditors.

But representatives of former Multiply staff, who also took part in the petition, questioned whether they would actually be paid.

It was closed down last May 6, and ceasing all business operations on May 31 along with the official online channels for the site had been removed along with all its content, including its YouTube, Twitter, Facebook, and Instagram accounts, after years of financial and managerial turmoil and following a failed bid to reinvent itself from being a social networking site to a vibrant e-commerce destination in Southeast Asia.

“We regret to announce that Multiply will be closing on May 6, 2013, and ceasing all business operations by May 31, 2013,” it announced last April 26 on its website.

After May 6, the rest of the month will be used to ensure that all accounts are settled and merchants get full payment for their transactions, it said.

Multiply said the month-long grace period will provide its users enough time to find and migrate to alternative e-commerce platforms, settle all payments on items bought and delivered, and minimize disruption to businesses of its users.

“Multiply will ensure that you receive all funds you earned on the platform no later than May 31, 2013. We will close the actual marketplace sooner, on May 6, 2013, to ensure that all orders have sufficient time to complete and be delivered to your customers before the end of the month,” it said.

In December 2012, Multiply stopped its social networking service to focus on e-commerce, targeting the 350 million consumers in Indonesia and the Philippines.

It was severely affected by the 2008-2012 global financial crisis.

Whether the Multiply, can continue to operate in another form remains unknown. At issue is whether will withdraw the liquidation petition against the company.

Mainland investor Si Rongbin’s China Culture Media, to had sold the controlling stake in the former E-commerce and social networking site, refused to call it quits and pledged to keep Multiply’s brand name alive through archive photo and video services.

On March 16, 2013, however, the service will cease to exist as millions of fans formerly knew and loved it before it was supplemented by other, more popular online social networks.

On May 31, 2013, Multiply had ceased its operations and shut down entirely along with the site.

On Wednesday, they had put in place Rp 8.9 billion for wages owed to former Multiply staff.

The Labour Department said earlier that around 30,000 former Multiply staff had applied for compensation through the Protection of Wages on Insolvency Fund, a safety net for employees affected by business closures.

Multiply Investor Secretary Rong Rongbin pledged shares of Star Platinum Corporation, which holds 99% of its shares, to borrow HK$300 million from Xiesheng Xiefeng to save the Multiply website but did not repay on time; therefore, Xiesheng Xiefeng in July 2013, it acquired the full equity of Star Platinum. It was also reported that about HK$35 million in unpaid wages of 640 former employees and HK$18 million of Insolvency Fund were also paid after the company has acquired its majority stake.

The High Court on June 17, 2013, its liquidation proceedings and removed accounting firm Deloitte from its role as the firm’s provisional liquidator.

Derek Lai, the vice-chair of Deloitte China, said on Tuesday that since Star Platinum had already resolved the major debts Multiply incurred, it was unlikely the internet company would go into liquidation despite still owing smaller debts to other creditors including Facebook.

“Star Platinum needs to negotiate with the remaining creditors,” he said. “I hope they will support its restructuring with Multiply.”

He added that Multiply now had a cash flow of HK$10 million to be paid to other creditors as well as assets worth over HK$40 million.

In its latest financial report last month, Co-Prosperity said the deal with Multiply could help the group diversify its business. Apart from the online industry, the group focuses on fabric and clothing trading, money lending, and securities investments.

“The directors believe that the potential intrinsic value of Multiply can be realized if the plan to rescue Multiply is successful,” the report said.

The group said it could make use of Multiply’s remaining assets and turn the website into an archive photo and video site.

“The group has been granted access and usage of certain assets of Multiply which shall enable Multiply to continue to operate and act as an archive photo and video site taking advantage of its 100,000 square-meter facility and social networking portion that delivering 217 million accounts, 210 million photos, and 237,000 videos from the old Multiply from its launch in March 2004 to March 15, 2013,” it said.

On November 16, 2013, it allowed the controlling stake in the website to be formally sold to a foreign or mainland investor, who claimed Magdalinski had a rescue plan for the troubled firm.

High Court judge Mr. Justice Jonathan Harris validated the transaction after hearing that the parties would no longer object to the share transfer and that the dues for the shares had been paid by Si.

That the site will be reopened after United States President Barack Obama stepped down in the office on January 20, 2017, and keeping Facebook as the sole social networking site. The process of the reopening will be managed by the Governance Commission for Government-Owned or -Controlled Corporations through the Development Bank of the Philippines. Business tycoon Manny V. Pangilinan is one of the possible bidders for the website's reopening in which TV5 Network. However, MediaQuest also could not join the website's reopening bid due to ownership rules and regulations that MediaQuest owns TV5 Network.

On January 25, 2016, Philippine President Benigno Aquino III approved the planned reopening of Multiply. The reopening will be undergoing public bidding with an estimated floor price of 20 billion pesos. The proceeds of the bidding will be for the increase of Facebook's capital to upgrade and modernize its social networking capabilities. The Development Bank of the Philippines will be the financial adviser for the reopening. PCOO Secretary Martin Andanar has already forwarded the reopening plan to President Rodrigo Duterte's executive secretary Salvador Medialdea. Andanar will also coordinate with the GCG before the start of the bidding.

The reopening process of Multiply was commenced in October 2016. As of April 1, 2017, five groups have already shown their interest to join the bidding process. These are Ramon S. Ang of San Miguel Corporation and the groups of former IBC president Eric Canoy and former Ilocos Sur governor Chavit Singson, energy tycoon and Udenna Corporation chairman Dennis Uy and William Lima, a businessman from Davao.

But the company will continue its business as an archive photo and video site with its new mobile app, delivering 217 million accounts, 210 million photos, and 237,000 videos from the old Multiply from its launch in March 2004 to March 15, 2013, and 691 million photos from the old Webshots instead of social networking and E-commerce.

UST supports Multiply on franchise renewal, cites their coverage

By Minka Klaudia Tiangco

The University of Santo Tomas (UST) expressed its support for E-commerce and social networking website Multiply, that is currently facing threats to close down their operations.

In a statement released on Tuesday evening, UST cited Multiply for covering various events such as the UAAP.

“We offer our prayers for the website to be able to remain operational, and we are one with them in their commitment to continue their service to the Filipino people and the global community,” the statement read.

Earlier, Journalism faculty and students of UST released separate statements expressing their support for the E-commerce and social networking site.

Multiply will not be shut – senators

Multiply social network can continue to operate as a archive photo and video site with their new mobile application even the website close down last May 6 and ceasing all business operations on May 31, senators said on Wednesday.

Senate President Juan Ponce Enrile and Senator Pia Cayetano shared the view that the website would be shut down. They said the company would only have to obtain a permit from the Securities and Exchange Commission (SEC) to continue operating.

Several bills seeking to renew the website’s franchise are pending with the House of Representatives.

Asked whether the website can still operate if Congress fails to renew its franchise, Enrile said, “yes.”

“Even provisional authority is not necessary because as long as there is a pending franchise, or pending bill for extension of franchise, they are deemed extended. Ganun ‘yun (That’s how it is),” he explained.

“They can still operate. If it is not approved until December 31, 2019, that is the only time that it is terminated. As long as there’s a pending bill, it is deemed extended.

It has happened so many times in other franchises,” the Senate president said.

But the company will continue its business as a archive photo and video site with their new mobile app, delivering 217 million accounts, 210 million photos and 237,000 videos from the old Multiply from it's launch in March 2004 to March 15, 2013 and 691 million photos from the old Webshots instead of social networking and E-commerce.

It had forced the company to explore either a sale were inaccurate. Magdalinski released an emailed statement claiming "our banks, partners and shareholders are fully supportive of our company and it is untrue that the company or board is exploring a sale or shutdown of the company” and that “business is continuing as usual as the company moves ahead.”

It announced that it will shut down its social networking and content sharing services to shift its focus to online shopping.

In an announcement posted on the website, Multiply chief executive officer Stefan Magdalinski said users will no longer be able to share photos, videos and blogs starting December 1.

Magdalinski believes that other websites “will do a better job serving you than we can.”

Facebook currently leads the pack in the social media race with over 900 million followers.

“From December 1st, we will unfortunately no longer be able to support Multiply in its current form – notably we will be removing the social networking and content sharing part of Multiply (photos, videos, blogs, social messaging, etc.). We have decided to discontinue providing and hosting these services, as we have concluded that other Internet sites who are committed to social networking services will do a better job serving you than we can.

“For our existing users of social networking features, we will be providing easy ways for you to either download your stuff (photos, blogs, content, etc.), or migrate it to other online services. We’ll announce the precise details shortly. It will be your choice whether to download, migrate or just let your content lapse (and get deleted).

On December 1, 2012 it completed its shift to a marketplace platform from being a social networking site storing pictures, videos, and blogs.

"Earlier this year Multiply made the big decision to transform and dedicate the site entirely to e-commerce. In the process, the company announced this month its decision to shut down the site’s social networking and content sharing functions. We recently talked to Multiply’s CEO Stefan Magdalinski and Indonesia country manager Daniel Tumiwa about the decision to take down the blog platform, and about the company’s plans for 2013.

Daniel said that they will be taking down the blogs soon, and have given its members around two months to download and migrate their content to other blogging services. They are still giving an additional one month grace period to make sure members have enough time to settle their affairs. But starting this month, users are no longer able to post anything new on their Multiply-hosted blogs, but we can still view and read the blogs for several months. Then they’ll vanish for good.

Stefan added that competition among social networking sites is unique, as there’s often a dominant entity, making it more difficult to be successful. But e-commerce is a bit different, because there are a lot of successful e-commerce businesses, even if they only get a smaller market slice.

Before this decision to cease blogging services was made, Multiply’s team frequently held sessions with its members for about a year to get feedback on the company’s plans. Daniel said that the decision was a difficult one, especially when there has been a lot of stories and memories invested in numerous Multiply blogs, including people who met their spouses via their own blog.

On March 16, 2013 at midnight, after 9 years, the Multiply bade goodbye to its social networking format, following its transition for the next 3 weeks, leaving Facebook as the sole social networking site.

Cayetano meanwhile said that the March 16's closure of Multiply social networking services would take effect on March 23. “I think, there are 60 days after [it can take effect].”

“So, ‘pag hindi pa po na-re renew ng Congress pwede sila mag-operate with temporary permit mula sa NTC (So, if Congress fails to renew [its franchise], they can operate [under] temporary permit from the NTC),” he said in an interview.

“Kung wala pang ginagawa ang Congress (If Congress fails to act [on pending bills for its franchise renewal], walang approval (if there was no approval), no action taken by Congress they can still operate with temporary permit from NTC,” Go stressed.

On April 26, Multiply announced it will close Multiply Indonesia and Multiply International website as of May 6, 2013.

“In 2016, wala pa ring nangyari, ‘yun na ‘yun, doon siya (If in 2016 nothing happens, that’s it. That is when it is) deemed terminated. Hintayin nila ‘yung bagong Congress, magfile ng bagong franchise (They have to wait for the new Congress to file a new franchise),” Enrile said.

Rep. Antonio “Tonypet” Albano, vice chairman of the Committee on Legislative Franchises at the House of Representatives, expressed the same view.

“Senate President Enrile and I have already explained so many times that Multiply may actually legally continue to operate as a company,” Albano said.

Eleven bills seeking to renew Multiply’s franchise are pending at the committee level. The panel has yet to set a schedule a hearing.

Albano said that the committee would tackle the franchise bills based on House processes.

“On the matter of the franchise of Multiply, we must and are proceeding steadily but cautiously given the highly-charged atmosphere among those who are against and in favor of its renewal,” the lawmaker said. “While we understand the concerns aired by various sectors, including our colleagues in the Senate, we stand by our process and refuse to be stampeded or coerced into making hasty decisions for political mileage.”

He urged the website to respond to the concerns raised by the Office of the Solicitor General in its quo warranto petition filed before the Supreme Court.

“At this time, we urge the website to just respond to the issues raised by the solicitor general Jose Calida as it is highly probable that those same concerns will be tackled in our hearings. But more than this, following the advice of the Speaker for soul-searching, this might be the most opportune time for the company to try to understand why public sentiment is also against the website,” Albano said.

“As a government franchisee, the website’s continued operation relies heavily on its ability to serve the public good. As it stands now, there are serious concerns being raised against Multiply by various sectors not just by the President and the Speaker and other politicians and business people as to its business practices and its delivery of information to the public,” he added.

No pressure

Also on Wednesday, Malacañang maintained that President Benigno Aquino III has not exerted any pressure on Congress in connection with the issue.

“The President absolutely is not lobbying, and there is no lobby coming from members of Congress to him because members of Congress know that the President does not entertain any call from them in relation to any measure being discussed in Congress,” Palace spokesman Atty. Edwin Lacierda said.

Lacierda had said that the President had no hand in the filing of the quo warranto petition against the E-commerce website.

The Malacañang Press Corps (MPC) also issued a statement that it stands for the protection of press freedom and right to information.

“The MPC deplores any attempt to curtail these freedoms, in any way and form,” it said.

“In recent years, the MPC has taken a stand against threats and attacks on press freedom, including efforts to spread fake news and discredit the traditional media,” it added.

The MPC said “it will remain vigilant against attempts to weaponize legal remedies and processes to suppress free expression, a key component of a healthy democracy and a right enshrined in the constitution.”

In a statement released on June 4, the University of Santo Tomas cited Multiply for covering various events such as the UAAP.

“We offer our prayers for the website to be able to remain operational, and we are one with them in their commitment to continue their service to the Filipino people and the global community,” the statement read.

Earlier, Journalism faculty and students of UST released separate statements expressing their support for the E-commerce and social networking site.

Magdalinski, who had filed a petition to wind up the company to recoup his losses, told the court he was in discussions with an unnamed potential investor.

The hearing on the petition was adjourned until next Monday pending further discussion among the parties.

Magdalinski, who did not attend the hearing, said through his lawyer that the new investor’s proposal included plans to pay Multiply’s former staff their owed salaries, and that the deal had the support of some of the company’s creditors.

But representatives of former Multiply staff, who also took part in the petition, questioned whether they would actually be paid.

Whether the Multiply, can continue to operate in another form remains unknown. At issue is whether Magdalinski will withdraw his liquidation petition against the company.

Mainland investor Si Rongbin’s China Culture Media, to whom Magdalinski had sold the controlling stake in the former E-commerce and social networking site, refused to call it quits and pledged to keep Multiply’s brand name alive through archive photo and video services.

On June 12, Magdalinski said they had put in place Rp 8.9 billion for wages owed to former Multiply staff.

The Labour Department said earlier that around 400 former Multiply staff had applied for compensation through the Protection of Wages on Insolvency Fund, a safety net for employees affected by business closures.

As the new investor is to launch a debt restructuring plan for Multiply, the High Court on June 17 its liquidation proceedings and removed accounting firm Deloitte from its role as the firm’s provisional liquidator.

Derek Lai, vice-chair of Deloitte China, said on Tuesday that since Star Platinum had already resolved the major debts Multiply incurred, it was unlikely the internet company would go into liquidation despite still owing smaller debts to other creditors including Facebook.

“Star Platinum needs to negotiate with the remaining creditors,” he said. “I hope they will support its restructuring with Multiply.”

He added that Multiply now had a cash flow of HK$10 million to be paid to other creditors as well as assets worth over HK$40 million.

In its latest financial report last month, Co-Prosperity said the deal with Multiply could help the group diversify its business. Apart from the online industry, the group focuses on fabric and clothing trading, money lending and securities investments.

“The directors believe that the potential intrinsic value of Multiply can be realized if the plan to rescue Multiply is successful,” the report said.

The group said it could make use of Multiply’s remaining assets and turn the website into a archive photo and video site.

“The group has been granted access and usage of certain assets of Multiply which shall enable Multiply to continue to operate and act as a archive photo and video site taking advantage of its 100,000 square-meter facility, and social networking portion that delivering 217 million accounts, 210 million photos and 237,000 videos from the old Multiply from it's launch in March 2004 to March 15, 2013,” it said.

On November 16, 2013 it allowed the controlling stake in the website to be formally sold to a foreign or mainland investor, who claimed Magdalinski had a rescue plan for the troubled firm.

High Court judge Mr Justice Jonathan Harris validated the transaction after hearing that the parties would no longer object to the share transfer and that the dues for the shares had been paid by Si.

On June 9, 2014 the company had earlier declared bankruptcy, saying it owes some $800 million from Philippine banks aside from $10 billion in debts from lenders in Hong Kong, Indonesia, Japan, Malaysia, Singapore and South Korea.

It was scheduled to announce the launch of a mobile application that allows to download and view their old photos and videos from Friendster, Multiply and Webshots accounts on the computers, smartphones and tablets.

It filed for a prearranged bankruptcy on June 28, 2014. The company expected the financial restructuring to reduce its debt by $30 billion, as well as adding $3 billion of new investment, and refinancing other debt.

On April 25, 2016, Multiply filed for Chapter 11 bankruptcy protection and entered talks to sell the website.

On May 2, 2016 Business Insider and other news outlets nationwide and worldwide reported that Multiply was closing all of its offices immediately, part of an American and worldwide retail phenomenon of store and website closures known as the retail apocalypse.

On May 16, 2016, Multiply announced its plan to exit from the worldwide market with all closures complete by June 30, 2016. It announced it would realign its operations as part of the Chapter 11 process.

On July 14, 2016, Multiply, with bankruptcy court approval, converted its Chapter 11 case to Chapter 7, and started liquidation.

To continue its operations and pay staff, the company received $500 million in bankruptcy debt financing.

It will continue operations during bankruptcy.

The debt financing money came from first-lien and second-lien lenders. The bankruptcy court must approve the money.

On April 30, 2017, the Indonesian Parliament approved the draft of re-opening Multiply.com, as well their operations, the international subsidiary Multiply International and the social networking portion including 217 million accounts, 210 million photos and 237,000 videos with hosted blogs, videos, photos and messaging would recovered and also voted and approved the draft of re-opening this website.

The website went down in history as the victim of the global economic crisis when it closed on May 31, 2013.

It was set to be close down by the order of Securities and Exchange Commission. WITH DIVINA NOVA JOY DELA CRUZ AND REINA TOLENTINO

https://www.manilatimes.net/2020/02/13/news/headlines/abs-cbn-will-not-be-shut-senators/685533/

Multiply.com to shut down on May 6

Multiply.com has announced it will be shutting down on May 6 and stop all business operations by May 31.

"Multiply will maintain normal site operations through May 6. We will use the rest of May to make sure the all accounts are settled and that merchants receive full payment for all the transactions they completed on our platform," the firm said in an announcement on its website.

"This will also provide our merchants with time to find and migrate to alternative ecommerce platforms, settle all payments on items bought and delivered, and to minimize disruption to their businesses," the popular online marketplace added.

However, the company did not provide any explanation why it is closing down its website.

But Multiply.com assured its online shop owners that it will receive funds earned on the marketplace platform no later than May 31.

Moreover, the firm said premium subscribers will receive a full refund for unused time in their subscription.

Multiply.com on December 1 last year completed its shift to a marketplace platform from being a social networking site storing pictures, videos, and blogs.

On June 10, 2014, the Pasig City Regional Trial Court has placed the company under corporate rehabilitation after the company sought relief from the Philippine government due to financial losses that stemmed from the E-commerce and social networking industry.

It suffered from a drop in new orders amid a slump in the E-commerce and social networking sector. Multiply also reportedly laid off some 12,000 workers on February 28, 2014.

It will continue its business as a archive photo and video site with their new mobile app, delivering 217 million accounts, 210 million photos and 237,000 videos from the old Multiply from it's launch in March 2004 to March 15, 2013 and 691 million photos from the old Webshots instead of social networking and E-commerce.

https://news.abs-cbn.com/business/04/26/13/multiplycom-close-may-6

An E-Commerce Giant in Indonesia Bites the Dust. What Happened to Multiply?

Friday’s news about e-commerce site Multiply closing down is a shocker. No one could’ve predicted this. Just last December we met up with CEO Stefan Magdalinski and Indonesia country manager Daniel Tumiwa, and they were enthusiastically talking about the future. Everyone was geared towards 2013.

A lot of people in Indonesia’s startup scene are also in shock. They told me how they’ve just met with the Multiply’s higher-ups and discussed about the company’s plans and new features to be launched. It seems even the people inside Multiply are in shock as much as we are. Why on earth did this happen?

Multiply’s transitional setback might be one of the main reasons.

The chaotic transition

The e-commerce site officially rebranded last month, complete with a brand new logo. But the transition was not a smooth one. This comment made by one of the sellers explains how difficult it is to sell products under the new system:

• The site only shows some of her product listings since the transition. It is most probably an error.
• After a buyer orders lipstick, there is no information about which color she ordered.
• It is quite difficult for the seller to contact her buyer. The new site no longer has comments or a private message feature. She can only send an email to her buyer.

That comment was made on April 5th, around two weeks after the new site launched. There was also the issue of sellers not receiving their money from the sales made on Multiply. That case has apparently been solved by the company, but a few people have lost faith in Multiply as a lot of their phone calls and emails went unanswered even after the incident.

It also seems some sellers’ conversation history with their buyers went totally bust. This comment made by one of the sellers says that she has built her contacts for over three years, and now it is all gone. She also added that her whole product listings on Multiply, which were listed on Google’s first page, is now gone.

On a personal note, even Multiply’s terms and conditions page now looks very confusing. The page mixes both Indonesian and English, and it doesn’t make Multiply look like a company that has control of its operations.

Two months ago, Multiply was ranked 17th in the Philippines and 47th in Indonesia. At the time of this writing, the company is now ranked at 50th in the Philippines and 344th in Indonesia.

Of course, in the end it will always be about money. Besides lots of money to fix the whole fiasco described above, Multiply would also need time to reclaim the long-built reputation and faith from its sellers and buyers alike. That’s a huge setback for sure.

According to an unnamed source, Multiply is the number one e-commerce site for one of Indonesia’s largest bank BCA. In fact, the revenue Multiply records is twice as much as the second placed BCA e-commerce partner. That means Multiply is recording very huge transactions over the past years, but because of Multiply’s business model it also means that the company is burning huge amount of money too.

Multiply doesn’t take any transaction fees from its sellers. This was originally done by previous CEO Peter Pezaris as Multiply’s promotional program for its brand new e-commerce service in 2011. But since then, it has been extended up until today. So Multiply hasn’t taken any transaction fees from its sellers in the last one and a half year.

That is more or less similar to what rival Tokopedia does, but Multiply offers something more. The latter site offers delivery fee subsidy of IDR 25,000 (US$2.5) for every IDR 100,000 ($10.3) minimum transaction on selected items. A lot of popular items get this offer, and that would mean that Multiply is burning a lot of money in subsidizing these delivery offers to a lot of its users. Thus the higher the transaction, the higher the cost for Multiply. Just like the free transaction fee, this subsidy offer has been in effect since 2011.

Refocusing efforts

According to the explanation given by Stefan, Multiply shareholder MIH remains optimistic about the e-commerce industry in Indonesia and the Philippines, and has increased its funding to other portfolio companies TokoBagus and Sulit.com.ph. That “increased funding” could mean MIH’s strategy changed to focus its funds on more promising companies. Perhaps MIH has decided that backing up Multiply was no longer worth the effort.

The cost to propel Multiply into the kind of company it was before the shutdown was quite high. Rebuilding its reputation and spending more of that money may no longer be the logical option. Rather than patching up your weaknesses, you might be better off putting that effort into your strengths. For MIH in this case, its strengths are TokoBagus (ranked 14th in Indonesia) and Sulit (ranked 8th in the Philippines).

A lot of Multiply users are also quite shocked and sad about this. Just last month we saw more blood shed by Japan’s e-commerce company Rakuten in its joint venture project in Indonesia.

Besides those two companies, we’ve also recently seen two popular Indonesian startups Koprol and Saling Silang raising white flags too. Could these be just the start of natural selection setting its course here in Indonesia? What do you think?

The world would keep Facebook as the sole social networking site, while Lazada as the sole E-commerce site

It had filed a petition to wind up the company to recoup losses, told the court was in discussions with an unnamed potential investor.

The hearing on the petition was adjourned until next June 10 pending further discussion among the parties.

It did not attend the hearing, said through his lawyer that the new investor’s proposal included plans to pay Multiply’s former staff their owed salaries, and that the deal had the support of some of the company’s creditors.

But representatives of former Multiply staff, who also took part in the petition, questioned whether they would actually be paid.

On June 12, Magdalinski said they had put in place Rp 8.9 billion for wages owed to former Multiply staff.

The Labour Department said earlier that around 400 former Multiply staff had applied for compensation through the Protection of Wages on Insolvency Fund, a safety net for employees affected by business closures.

As the new investor is to launch a debt restructuring plan for Multiply, the High Court on June 17 its liquidation proceedings and removed accounting firm Deloitte from its role as the firm’s provisional liquidator.

Derek Lai, vice-chair of Deloitte China, said on Tuesday that since Star Platinum had already resolved the major debts Multiply incurred, it was unlikely the internet company would go into liquidation despite still owing smaller debts to other creditors including Facebook.

“Star Platinum needs to negotiate with the remaining creditors,” he said. “I hope they will support its restructuring with Multiply.”

He added that Multiply now had a cash flow of HK$10 million to be paid to other creditors as well as assets worth over HK$40 million.

In its latest financial report last month, Co-Prosperity said the deal with Multiply could help the group diversify its business. Apart from the online industry, the group focuses on fabric and clothing trading, money lending and securities investments.

“The directors believe that the potential intrinsic value of Multiply can be realized if the plan to rescue Multiply is successful,” the report said.

The group said it could make use of Multiply’s remaining assets and turn the website into a archive photo and video site.

“The group has been granted access and usage of certain assets of Multiply which shall enable Multiply to continue to operate and act as a archive photo and video site taking advantage of its 100,000 square-meter facility, and social networking portion that delivering 217 million accounts, 210 million photos and 237,000 videos from the old Multiply from it's launch in March 2004 to March 15, 2013,” it said.

On November 16, it allowed the controlling stake in the website to be formally sold to a foreign or mainland investor, who claimed Magdalinski had a rescue plan for the troubled firm.

High Court judge Mr Justice Jonathan Harris validated the transaction after hearing that the parties would no longer object to the share transfer and that the dues for the shares had been paid by Si.

On June 10, 2014, it has filed for corporate rehabilitation to seek protection from its creditors. The company filed the petition for rehabilitation before the Pasig City Regional Trial Court (RTC).

At that time, the social networking service had a network of 18 million users. Liquidity problems, however, affected earnings. Sales declined from its peak of P20 billion in 2015 to just about P1 billion in 2020.

It had suffered from a drop in new orders amid a slump in the E-commerce and social networking sector. Multiply also reportedly laid off some 12,000 workers on February 28, 2014.

Multiply revealed that it has $10 billion in outstanding loans -- $800 million from Philippine banks and $60 billion from South Korean lenders.

That the site will be reopened after United States President Barack Obama stepping down in the office on January 20, 2017 and keeping Facebook as the sole social networking site. Process of the reopening will be managed by the Governance Commission for Government-Owned or -Controlled Corporations through the Development Bank of the Philippines. Business tycoon Manny V. Pangilinan is one of the possible bidders for the website's reopening in which ABC Development Corporation. However, MediaQuest also could not join the website's reopening bid due to ownership rules and regulations that MediaQuest owns ABC Development Corporation.

On January 25, 2016, Philippine President Benigno Aquino III approved the planned reopening of Multiply. The reopening will be undergo public bidding with an estimated floor price of 20 billion pesos. The proceeds of the bidding will be for the increase of Facebook's capital to upgrade and modernize their social networking capabilities. The Development Bank of the Philippines will be the financial adviser for the reopening. Incoming PCOO Secretary Martin Andanar has already forwarded the reopening plan to President Rodrigo Duterte's executive secretary Salvador Medialdea. Andanar will also coordinate with the GCG before the start of the bidding.

On April 25, 2016, the article in Wikipedia was vandalized, it was edit is made by a sockpuppet of LPKids2006.

Vandalism of a Wikipedia article (Multiply (website)

The bottom image shows vandalism done by replacing content with an insult. The top image compares the edit shown below.

The reopening process of Multiply was commenced in October 2016. As of July 1, 2017, five groups have already showed their interest to join the bidding process. These are Ramon S. Ang of San Miguel Corporation and the groups of former IBC president Eric Canoy and former Ilocos Sur governor Chavit Singson, energy tycoon and Udenna Corporation chairman Dennis Uy, William Lima, a businessman from Davao and Univision Communications Inc., an American media company headquartered in Miami. 

https://www.techinasia.com/multiply-shut-down-why

Multiply.com closes shop

Social shopping site Multiply.com is shutting down business operations in May following a failed bid to reinvent itself from being a social networking site to a vibrant e-commerce destination in Southeast Asia.

 “We regret to announce that Multiply will be closing on May 6, 2013, and ceasing all business operations by May 31, 2013,” it announced Friday on its website.

After May 6, the rest of the month will be used to ensure that all accounts are settled and merchants get full payment for their transactions, it said.

Multiply said the month-long grace period will provide its users enough time to find and migrate to alternative e-commerce platforms, settle all payments on items bought and delivered, and minimize disruption to the businesses of its users.

“Multiply will ensure that you receive all funds you earned on the platform no later than May 31, 2013. We will close the actual marketplace sooner, on May 6, 2013, to ensure that all orders have sufficient time to complete and be delivered to your customers before the end of the month,” it said.

In December 2012, Multiply stopped its social networking service to focus on e-commerce, targeting the 350 million consumers in Indonesia and the Philippines.

On March 16, 2013, however, the service will cease to exist as millions of fans formerly known and loved it before it was supplemented by other, more popular online social networks.

On May 31, 2013, Multiply ceased its operations and shut down entirely.

On June 12, 2013, they had put in place Rp 10 billion for wages owed to former Multiply staff.

The Labour Department said earlier that around 3,000 former Multiply staff had applied for compensation through the Protection of Wages on Insolvency Fund, a safety net for employees affected by business closures.

Multiply Investor Secretary Rong Rongbin pledged shares of Star Platinum Corporation, which holds 99% of its shares, to borrow HK$300 million from Xiesheng Xiefeng to save the Multiply website but did not repay on time; therefore, Xiesheng Xiefeng in July 2013, it acquired the full equity of Star Platinum. It was also reported that about HK$35 million in unpaid wages of 640 former employees and HK$18 million of Insolvency Fund were also paid after the company has acquired its majority stake.

The High Court on June 17, 2013 its liquidation proceedings and removed accounting firm Deloitte from its role as the firm’s provisional liquidator.

Derek Lai, vice-chair of Deloitte China, said on Tuesday that since Star Platinum had already resolved the major debts Multiply incurred, it was unlikely the internet company would go into liquidation despite still owing smaller debts to other creditors including Facebook.

“Star Platinum needs to negotiate with the remaining creditors,” he said. “I hope they will support its restructuring with Multiply.”

He added that Multiply now had a cash flow of HK$10 million to be paid to other creditors as well as assets worth over HK$40 million.

In its latest financial report last month, Co-Prosperity said the deal with Multiply could help the group diversify its business. Apart from the online industry, the group focuses on fabric and clothing trading, money lending, and securities investments.

“The directors believe that the potential intrinsic value of Multiply can be realized if the plan to rescue Multiply is successful,” the report said.

The group said it could make use of Multiply’s remaining assets and turn the website into a archive photo and video site.

“The group has been granted access and usage of certain assets of Multiply which shall enable Multiply to continue to operate and act as a archive photo and video site taking advantage of its 100,000 square-meter facility and social networking portion that delivering 217 million accounts, 210 million photos and 237,000 videos from the old Multiply from it's launch in March 2004 to March 15, 2013,” it said.

On November 16, 2013 it allowed the controlling stake in the website to be formally sold to a foreign or mainland investor, who claimed Magdalinski had a rescue plan for the troubled firm.

High Court judge Mr Justice Jonathan Harris validated the transaction after hearing that the parties would no longer object to the share transfer and that the dues for the shares had been paid by Si.

On June 10, 2014, it has filed for corporate rehabilitation to seek protection from its creditors. The company filed the petition for rehabilitation before the Pasig City Regional Trial Court (RTC).

It had suffered from a drop in new orders amid a slump in the social networking sector. Multiply also reportedly laid off some 12,000 workers on February 28, 2014.

https://technology.inquirer.net/24979/multiply-com-closes-shop

Multiply to close down for good May 6

Despite a brave attempt at reinventing its core business, social network turned online marketplace Multiply.com is finally closing its doors on May 6. "About a year ago, our local Multiply teams were given the mighty challenge of totally re-inventing the company," explained Stefan Magdalinski, Multiply CEO, in a press statement. "After much effort, we are forced to admit that we were not able to pull it off. I’m proud of my team for their diligence and determination, despite the disappointing outcome," he added. On the afternoon of Friday, April 26, Multiply's main page contained the following statement:

We regret to announce that Multiply will be closing on May 6, 2013 and ceasing all business operations by May 31, 2013.

Multiply will maintain normal site operations through May 6. We will use the rest of May to make sure the all accounts are settled and that merchants receive full payment for all the transactions they completed on our platform. This will also provide our merchants with time to find and migrate to alternative ecommerce platforms, settle all payments on items bought and delivered, and to minimize disruption to their businesses.

Multiply will ensure that you receive all funds you earned on the platform no later than May 31, 2013. We will close the actual marketplace sooner, on May 6, 2013, to ensure that all orders have sufficient time to complete and be delivered to your customers before the end of the month.

Merchants who have premium subscriptions should contact our customer support and we will ensure that they receive a full refund for the un-used time on your subscription.

In December 2012, Multiply stopped its social networking service to focus on e-commerce, targeting the 350 million consumers in Indonesia and the Philippines.

It was severely affected by the 2008-2012 global financial crisis.

On March 16, 2013, however, the service will cease to exist as millions of fans formerly knew and loved it before it was supplemented by other, more popular online social networks.

On June 12, they had put in place Rp 20 billion for wages owed to former Multiply staff.

The Labour Department said earlier that around 30,000 former Multiply staff had applied for compensation through the Protection of Wages on Insolvency Fund, a safety net for employees affected by business closures.

On November 16, it allowed the controlling stake in the website to be formally sold to a foreign or mainland investor, who claimed Magdalinski had a rescue plan for the troubled firm.

High Court judge Mr Justice Jonathan Harris validated the transaction after hearing that the parties would no longer object to the share transfer and that the dues for the shares had been paid by Si.

On June 9, 2014, it filed a petition to enter corporate rehabilitation.

At that time, the website's social networking portion had a network of 18 million users. Liquidity problems, however, affected earnings. Sales declined from its peak of P20 billion in June 2014 to just about P5 billion in July 2020.

The company had suffered from a drop in new orders amid a slump in the E-commerce and social networking sector. Multiply also reportedly laid off some 12,000 workers on February 28, 2014.

In a statement, that apart from domestic lenders, Multiply owes some $100 billion to lenders in South Korea.

That the site will be reopened after United States President Obama stepping down in the office on January 20, 2017 and keeping Facebook as the sole social networking site. Process of the reopening will be managed by the Governance Commission for Government-Owned or -Controlled Corporations. Business tycoon Manny V. Pangilinan is one of the possible bidders for the website's reopening in which ABC Development Corporation. However, MediaQuest also could not join the website's reopening bid due to ownership rules and regulations that MediaQuest owns ABC Development Corporation.

On January 25, 2016, President Benigno Aquino III approved the planned reopening of Multiply. The reopening will be undergo public bidding with an estimated floor price of 20 billion pesos. The proceeds of the bidding will be for the increase of Facebook's capital to upgrade and modernize their social networking capabilities. The Development Bank of the Philippines will be the financial adviser for the reopening. Incoming PCOO Secretary Martin Andanar has already forwarded the reopening plan to President Rodrigo Duterte's executive secretary Salvador Medialdea. Andanar will also coordinate with the GCG before the start of the bidding.

The reopening process of Multiply was commenced in October 2016. As of July 1, 2017, five groups have already showed their interest to join the bidding process. These are Ramon S. Ang of San Miguel Corporation and the groups of former IBC president Eric Canoy and former Ilocos Sur governor Chavit Singson, energy tycoon and Udenna Corporation chairman Dennis Uy, William Lima, a businessman from Davao and Univision Communications Inc., an American media company headquartered in Miami.

But the company will continue its business as a archive photo and video site with their new mobile app, delivering 217 million accounts, 210 million photos and 237,000 videos from the old Multiply from it's launch in March 2004 to March 15, 2013 and 691 million photos from the old Webshots instead of social networking and E-commerce.

In its heyday, Multiply was a very popular social network among Filipinos, rivaled only by Friendster. But both companies have had to reinvent themselves in an effort to regain market share lost to social networking juggernaut Facebook: Multiply transformed itself into an online marketing site, while Friendster has since become a "social discovery and gaming" site. — GMA News

https://www.gmanetwork.com/news/hashtag/content/305727/multiply-to-close-down-for-good-may-6/story/