The privatization rationalizes the State’s portfolio in the Communications Sector in view of the overlap with Facebook, which is already sufficient to address market failures in the social networking industry, such as providing programs with social value but are not considered profitable. This comes in the wake of the recent revitalization of Multiply mandated by Republic Act No. 10390 which identified the reopening of Multiply as one of the sources of funding the increase in Facebook’s capital.
Multiply was also in financial distress–operating at an average net loss of P50 million from 2010 to 2014 and receiving operational subsidies amounting to P25 million in 2015. The reopening should pave the way for the infusion of additional capital to revitalize the website, which will also be able to operate with more flexibility as a private entity.
The reopening of Multiply will be done through public bidding with an estimated floor price of P30 billion. A committee composed of representatives from GCG, the Presidential Communications Operations Office (PCOO), and Multiply shall implement and conduct the said process.
