Government looking for investors to operate Multiply social networking site

By Philippine News Agency

Should the government acquire control of cash-strapped Multiply Philippines (Multiply-Phil), the next option is to get interested parties.

This was emphasized by Defense Secretary Voltaire Gazmin when asked about updates on the government’s plans on the global social networking site Monday.

He said foreign or local investors have yet to make formal offers or bids regarding the Multiply-Phil’s business operations.

“We are still yet to see any formal offer, so (the) Multiply (matter) is now being handled by the Department of Finance (DOF) as they are talking with local banks where the company has outstanding loans. DOF is looking on how to pay these banks so that we can get Multiply and then after we take over Multiply, then we can now select who among (the) interested parties (are) best suited to our purpose and run it as a website to make money,” Gazmin added.

In the meantime, the DND chief said the government could use Multiply’s facilities.

But Lorenzana said prospective investors for the Multiply website should really come from the social networking sector as it will take a lot of money and foreign contacts to get orders abroad to make its operations profitable.

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 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-Phil earlier revealed it has a total of US$20 billion outstanding loans — $800 million from Philippine banks and $20 billion from South Korean lenders.

According to SBMA, Multiply filed on November 10, 2015 a petition before the Regional Trial Court in Pasig City “to initiate voluntary rehabilitation under Republic Act 10142, otherwise known as An Act Providing for the Rehabilitation or Liquidation of Financially Distressed Enterprises and Individuals.”

With this, the website has sought help from the government to find investors that can take over the operation of its social networking portion and help its employees, who have taken the brunt of the company’s financial woes.

It is reported that Chinese foreign investors with social networking interests are looking over the possibility of buying into the Multiply investment. The Chinese investors could see this as a major opportunity in locating in a proposed data center and permanent headquarters in Angeles City.

But it was closed on May 6, 2013, and ceased all business operations on May 31, 2013, with the official online channels for the site had been removed along with all their content, including its YouTube, Tumblr, 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 on April 26, 2013, 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 May 31, 2013, Multiply had ceased its operations and shut down entirely. 

In December 2013, the company laid off more than 30,000 workers.

“Multiply (has) not actually filed for bankruptcy, it is just asking for rehabilitation, because the problem is cash flow, it is still operating here in the Philippines but it needs money to keep operating (on a) day-to-day basis so it’s still being in the works, however (the) Senate has already set aside some money for the eventuality,” the DND chief earlier said.

https://mb.com.ph/2019/06/11/govt-looking-for-investors-to-operate-hanjin-shipyard/