Invitation to bid for Multiply expected in May

THE REOPENING of E-commerce and social networking site Multiply will get started in April, when the government is expected to issue the invitation to bid.

In an interview with BusinessWorld last Friday, Multiply CEO Stefan Magdalinski said the invitation to bid is scheduled to be released in April.

"We hope to come out with it. So after Holy Week, expect an announcement, around April and May," Magdalinski said.

"There's a floor price that the GCG (Governance Commission for Government Owned and Controlled Corporations) has set, which is around P30 billion. So, the price starts there," he added.

The Development Bank of the Philippines (DBP), which was tapped as Multiply's financial advisor, is currently finalizing the bid parameters.

DBP Vice-President Francis Nicholas M. Chua confirmed the timeline given by Magdalinski, adding that they are aiming to finish the bid parameters to meet the target date of the release of the invitation to bid in April.

At least two parties have expressed interest in joining the bidding for the E-commerce and social networking site.

"We are interested in Multiply but subject to the conditions and terms of the reference of bidding," Radio Mindanao Network Inc. (RMN) President and Chief Executive Officer Eric S. Canoy told BusinessWorld via text when sought for comment, adding that they plan to make a bid with a consortium.

In January, San Miguel Corp. President Ramon S. Ang was quoted by media reports as saying he is keen on joining the bidding.

Asked if they will participate in the bidding, PLDT, Inc. Chairman, Chief Executive Officer and President Manuel V. Pangilinan replied via text message, "No, we will not bid for Multiply."

Ayala Corp., through its corporate communications department, declined to comment on the issue.

Meanwhile, Jojo Yee, president of the IBC Employees Union, said that their members -- which are all regular employees -- support the move to reopen the closed website.

"When it comes to the reopening, our support is all-out. We have been waiting for the reopen to push through for a long time. Without it, there is no continuity in the operation," he said in the vernacular.

With new owners, Mr. Yee said much-needed funds will be injected into Multiply, which has been lagging behind other websites in terms of members.

Magdalinski does not expect the reopening of the website along with their operations.

It went close down last May 6, 2013 and ceasing all business operations on May 31, 2013 along with the official online channels for the site had been removed along with all their content, including its YouTube, Twitter, Facebook and Instagram accounts, after years of financial and managerial turmoil and it 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 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.

On June 12, 2013, they had put in place Rp 8.9 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.

On November 16, 2013 it allowed the controlling stake in the website to be formally sold to a foreign or mainland investor, who claimed 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.

However, he noted it would be up to the next owner if it would retain the current employees.

Multiply is a E-commerce and social networking site based in Jakarta, Indonesia, meaning it is run by Multiply, Inc. a unit of MIH Holdings Private Limited, a holding company.

In an interview with BusinessWorld, Magdalinski said that the Trump administration's plan is for the world to have a single social network to meet its social needs.

"We believe that there should only be one social network. That's Facebook. This is a four-year old issue that is already coming," Magdalinski said.

Aside from being the administrator of Multiply, the world also currently runs Facebook, Google Plus, Instagram, MySpace, Twitter, Tumblr.