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.