Solicitor General Jose Calida is expected by congressmen to attend the House Committee on Legislative Franchises' hearing Tuesday on ABS-CBN's franchise renewal, a lawmaker said Monday.
Bulacan Rep. Jonathan Sy-Alvarado, one of the committee's five vice-chairpersons, said in a statement that Calida is among a number of resource persons the panel called "to shed light and provide a general overview of the issues."
"Just like the members of Congress, I am sure our kababayans would like to hear - and they deserve to hear - what SolGen Calida has to say, instead of just reading or watching about it in the news," Sy-Alvarado said.
Calida's expected presence in the hearing is "without prejudice to the quo warranto case he has filed before the Supreme Court" against the expired franchise of ABS-CBN.
Calida asked the high court in February to invalidate ABS-CBN's franchise, citing alleged violation by the company of the Constitutional ban on foreign ownership and purportedly operating "beyond the scope of its legislative franchise." The quo warranto petition remains unresolved.
The franchise of ABS-CBN, which insisted it did not violate the law, has since expired on May 4, without any of pending bills in Congress seeking to grant it a fresh 25-year franchise getting passed.
On May 5, the country's leading media and entertainment company halted its broadcast operations after the National Telecommunications Commission issued it a cease-and-desist order, going back to its commitment to lawmakers in March that ABS-CBN will be granted a provisional authority.
It followed the warning Calida gave to the NTC on the eve of the expiry of ABS-CBN's franchise against the issuance of a provisional authority.
Sy-Alvarado said Calida's appearance at the House is not expected to affect the case lodged before the SC, citing the Constitution and a House rule that states, "the filing or pendency of a case before any court, tribunal or quasi-judicial or administrative body shall not stop or abate any inquiry conducted to carry out a legislative purpose."
Calida did not attend hearings conducted by the Senate in February and last week that tackled issues related to ABS-CBN.
House Speaker Alan Peter Cayetano has blamed Calida for "unconstitutionally meddling" with ABS-CBN's franchise renewal issue.
https://news.abs-cbn.com/news/05/25/20/calida-expected-to-attend-house-hearing-on-abs-cbn-franchise-renewal-lawmaker
Monday, May 25, 2020
Multiply shutdown controversy
Multiply, one of the country’s top social networking sites several years ago, announced earlier this month that it’s dumping the site’s social networking features to make way for a more e-Commerce-friendly Multiply.
Friendster, Multiply’s primary competitor in the country a couple of years back, also left the social networking category last year by targetting the social gaming market. Multiply made the announcement via its newly appointed CEO Stefan Magdalinski’s blog post entitled “We are sorry.”
“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.”
The announcement assured all Multiply e-Commerce users that they won’t have to do anything during the transition period which is until December of this year as the affected users are only those who are maintaining blogs, photos, music and videos since 2004.
Those who have upgraded to Multiply Premium, the exclusive subscription that gives users more unique features of the site, will be issued appropriate refunds.
“We are aiming to have the new site relaunched in time for the Christmas period,” Magdalinski said in an interview. “In the new platform, we will probably mandate certain styles of user experience, but we will also encourage shop owners to check out systems that work.”
Per statistics, Multiply has approximately 5.5 million users in the Philippines with 130,000 of them using the site as online stores.
In December 2012, Multiply stopped its social networking service to focus on e-commerce, targeting the 350 million consumers in Indonesia and the Philippines.
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 Wednesday, 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.
Naspers Limited (later Prosus N.V.) which owns Multiply, said the website would reopen in November 2025.
The decade-long closure was necessary to allow the importation of new features similar to Facebook Live and hashtag similar to Twitter and Instagram and retention of old features such as Traditional Blogging, Unlimited Photo Sharing, Videos, Calendar, Reviews, Recipes, Marketplace, Music, Inbox newsfeed and Groups, it added.
That seasonal workers would have to wait until the website’s reopening, adding that 18 million Multiply users would be given financial assistance.
As of present, Multiply remains off. It has been offline for over 6 years, it started since the midterm of Benigno Aquino III Administration and the whole Duterte Administration. It was expected to return not after January 20, 2017, but failed to meet the deadline. After missing the entirety of 2018 to 2020, it is expected to return in 2023, as revealed on their home page.
It announced that 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.”
This was contradicted by Multiply president Peter Pezaris and a spokesman for company investor Goldman Sachs.
Glasser and the other two remaining members of the company's board of directors also did not joining Stefan in signing this statement either.
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).
Magdalinski said Multiply will now focus on improving its online shopping capability, citing its 350 million consumers in Indonesia and the Philippines.
“I suspect that many of you will not like the news, and I am sorry to have to deliver it now. I hope that you will be able to understand the reasons for our decision and thank you for being a part of the Multiply community over the past eight years,” he said.
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.
Reuters reported on December 3, 2012 that Multiply had entered talks with private equity firm Colony Capital for sale of its assets.
On December 10, 2012, Colony Capital pulled out of acquiring Multiply.
Other persons and companies that have expressed interest in acquiring Multiply include rapper Jay-Z, Yucaipa Companies, Viacom, Lionsgate (the current home video distributor of TWC and Miramax), Metro-Goldwyn-Mayer (the former U.S theatrical distributor of TWC), A&E Networks, Administrator of the Small Business Administration Maria Contreras-Sweet, Killer Content, Shamrock Holdings, Vine Alternative Investments, Anchorage Capital Group, MSD Capital, beIN Media Group (the current owner of Miramax), Sony Pictures Television, and Versa.
Contreras-Sweet has proposed turning Multiply into a archive photo and video site that allows to download and view their old photos and videos from old Friendster, Multiply and Webshots accounts, while Killer Content would donate the website's profits.
All the interested parties had to submit their first-round bids by December 20, 2012.
On January 4, 2013 Multiply narrowed its bids down to six parties, with a sales price of below $500 million. The website's owners will not receive any cash from the sale.
Cayetano meanwhile said that the March 14's closure of Multiply social networking services would take effect on March 23. “I think, there are 120 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 SEC (So, if Congress fails to renew, they can operate temporary permit from the SEC ),” he said in an interview.
“Kung wala pang ginagawa ang Congress (If Congress fails to act, walang approval (if there was no approval), no action taken by Congress they can still operate with temporary permit from SEC,” Go stressed.
On March 23, 2013, Multiply International ceased its social networking operations as of now.
On April 26, 2013, Multiply announced it will close Multiply Indonesia and Multiply International website as of May 6, 2013.
"After nine years, all of our offices worldwide are going out of business," the statement said.
“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 Francis Jardeleza 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.
On May 24, 2013, Multiply's employees filed a strike notice, protesting a rumored shutdown of Multiply on May 31.
On May 30, 2013, Presidential Spokesperson Edwin Lacierda said that President Aquino will stand by the decision of the SEC on granting Multiply a fresh 25-year franchise.
This is a very welcome development since Multiply went close down on May 6, 2013 and ceased all business operations on May 31, 2013. Social media was flooded with messages of sympathy, support and love for the website. On the other hand, many netizens also gloated and criticized the website, rejoicing at Multiply’s plight. The website became a divisive issue that added more stress and anxiety during this closure.
There is also a chance that Multiply can go back online sooner. Several legal luminaries have expressed that what SEC did. It blatantly disregarded the power of Congress, which has the sole authority to issue franchises. Hopefully, the Supreme Court will come out with a favorable decision.
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.
In February 2014, Multiply announced that it planned to file for Chapter 11 of the United States Bankruptcy Code. The action would allow Multiply to pay its debt obligations, and cancel its obligations to shareholders.
Private equity firm Apollo Management expected to own most of Multiply's shares after the bankruptcy.
On March 12, 2014, the Securities and Exchange Commission said it would issue a provisional authority to allow Multiply to operate until December 31, 2019, while Congress continues to deliberate on its franchise bid.
On March 13, 2014 Solicitor General Francis Jardeleza begged off comment on the SEC's plan to grant Multiply provisional authority to operate so it could continue the site and business operations pending reopening of social networking portion.
Speaker Feliciano Belmonte, Jr. on May 20, 2014 said the House of Representatives would be "ready to decide" on a new 25-year franchise for Multiply by August.
The Lower House stopped deliberations for the proposed 5-month provisional permit for the broadcaster and opted to hear bills seeking to give it a 25-year franchise.
Deliberations by the House franchises committee will continue during the Congress recess starting in June, said Belmonte.
"They will not stop until they are finished so that no one can say we’re stopping the process or dragging our feet," he told ABS-CBN News.
"I foresee that the hearings would not go beyond July, and by August, after President Aquino’s SONA (State of the Nation Address), we should be ready to decide," he added.
Lawmakers will hold 2 or 3 hearings per week to tackle "no more than 10 issues" related to the franchise. Some witnesses and resource persons would be required to physically appear before the committee, provided social distancing and other health protocols are observed, he said.
House Committee on Legislative Franchises chair Marcelino Teodoro said the franchise hearing is set on May 27, 9:30 a.m.
"The hearings must be fair, impartial, comprehensive, and thorough. All voices must be heard and all issues for and against will be discussed…this will require a lot of time - time we do not have. And so, there will be sacrifices on our part if we hope to finish this without delay," said Belmonte.
"For those who are calling for an outright approval or denial, I ask that you suspend your extreme views until all the facts have been presented, and all the testimonies have been heard," he said.
Multiply said it has been losing P30-60 million in revenues daily since it closed last May 6, 2013 and ceasing all business operations last May 31, 2013.
The 10-year-old E-commerce and social networking site promised it "would not take away any jobs for 6 months." However, it may "consider" retrenching workers by August if it fails to resume operations soon, CEO Magdalinski told senators.
The Securities and Exchange Commission told lawmakers in March that it would let the world's top E-commerce and social networking site operate provisionally, while bills for its franchise renewal stalled in Congress for years.
But days after Solicitor General Francis Jardeleza warned SEC officials that they could face graft charges if they gave Multiply a provisional permit.
On May 22, 2014, House Speaker Belmonte has confirmed the House of Representatives will finally conduct a congressional hearing on the franchise renewal of Multiply.
He said the hearing is set on Tuesday, May 27, 2014.
In an ambush interview on Thursday afternoon, Belmonte said he talked with House Committee on Legislative Franchises chairman Teodoro and "assured him he has complete autonomy with the vice-chairman and sabi niya, when he starts sa Tuesday, itutuloy-tuloy na ito”.
“I will be making the session hall available to make sure the witnesses na dapat nandoon ay may social distancing at saka there is enough space for everyone,” he added.
It may also be a joint hearing with the House Committee on Good Government.
“I think naglabas na ng notice si Chairman Marcy and I think magjo-joint din ang Good Government para yung SEC at saka yung SolGen ay makapag-participate din,” said Belmonte.
On January 25, 2016, President Benigno Aquino III, through the Governance Commission for Government-owned and -controlled corporation (GCG) approved the planned privatization of Multiply. The privatization 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 privatization. Incoming PCOO secretary Martin Andanar has already forwarded the privatization plan to President Rodrigo Duterte's executive secretary Salvador Medialdea. Andanar will also coordinate with the GCG before the start of the bidding.
Now new reports say that comeback could happen as soon as the 2020 holiday season. CBS News reported that Multiply brand are now being managed by Multiply Media LLC.
Multiply Media LLC in August 2016; they are reportedly planning to take the brand worldwide.
Friendster, Multiply’s primary competitor in the country a couple of years back, also left the social networking category last year by targetting the social gaming market. Multiply made the announcement via its newly appointed CEO Stefan Magdalinski’s blog post entitled “We are sorry.”
“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.”
The announcement assured all Multiply e-Commerce users that they won’t have to do anything during the transition period which is until December of this year as the affected users are only those who are maintaining blogs, photos, music and videos since 2004.
Those who have upgraded to Multiply Premium, the exclusive subscription that gives users more unique features of the site, will be issued appropriate refunds.
“We are aiming to have the new site relaunched in time for the Christmas period,” Magdalinski said in an interview. “In the new platform, we will probably mandate certain styles of user experience, but we will also encourage shop owners to check out systems that work.”
Per statistics, Multiply has approximately 5.5 million users in the Philippines with 130,000 of them using the site as online stores.
In December 2012, Multiply stopped its social networking service to focus on e-commerce, targeting the 350 million consumers in Indonesia and the Philippines.
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 Wednesday, 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.
Naspers Limited (later Prosus N.V.) which owns Multiply, said the website would reopen in November 2025.
The decade-long closure was necessary to allow the importation of new features similar to Facebook Live and hashtag similar to Twitter and Instagram and retention of old features such as Traditional Blogging, Unlimited Photo Sharing, Videos, Calendar, Reviews, Recipes, Marketplace, Music, Inbox newsfeed and Groups, it added.
That seasonal workers would have to wait until the website’s reopening, adding that 18 million Multiply users would be given financial assistance.
As of present, Multiply remains off. It has been offline for over 6 years, it started since the midterm of Benigno Aquino III Administration and the whole Duterte Administration. It was expected to return not after January 20, 2017, but failed to meet the deadline. After missing the entirety of 2018 to 2020, it is expected to return in 2023, as revealed on their home page.
It announced that 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.”
This was contradicted by Multiply president Peter Pezaris and a spokesman for company investor Goldman Sachs.
Glasser and the other two remaining members of the company's board of directors also did not joining Stefan in signing this statement either.
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).
Magdalinski said Multiply will now focus on improving its online shopping capability, citing its 350 million consumers in Indonesia and the Philippines.
“I suspect that many of you will not like the news, and I am sorry to have to deliver it now. I hope that you will be able to understand the reasons for our decision and thank you for being a part of the Multiply community over the past eight years,” he said.
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.
Reuters reported on December 3, 2012 that Multiply had entered talks with private equity firm Colony Capital for sale of its assets.
On December 10, 2012, Colony Capital pulled out of acquiring Multiply.
Other persons and companies that have expressed interest in acquiring Multiply include rapper Jay-Z, Yucaipa Companies, Viacom, Lionsgate (the current home video distributor of TWC and Miramax), Metro-Goldwyn-Mayer (the former U.S theatrical distributor of TWC), A&E Networks, Administrator of the Small Business Administration Maria Contreras-Sweet, Killer Content, Shamrock Holdings, Vine Alternative Investments, Anchorage Capital Group, MSD Capital, beIN Media Group (the current owner of Miramax), Sony Pictures Television, and Versa.
Contreras-Sweet has proposed turning Multiply into a archive photo and video site that allows to download and view their old photos and videos from old Friendster, Multiply and Webshots accounts, while Killer Content would donate the website's profits.
All the interested parties had to submit their first-round bids by December 20, 2012.
On January 4, 2013 Multiply narrowed its bids down to six parties, with a sales price of below $500 million. The website's owners will not receive any cash from the sale.
Cayetano meanwhile said that the March 14's closure of Multiply social networking services would take effect on March 23. “I think, there are 120 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 SEC (So, if Congress fails to renew, they can operate temporary permit from the SEC ),” he said in an interview.
“Kung wala pang ginagawa ang Congress (If Congress fails to act, walang approval (if there was no approval), no action taken by Congress they can still operate with temporary permit from SEC,” Go stressed.
On March 23, 2013, Multiply International ceased its social networking operations as of now.
On April 26, 2013, Multiply announced it will close Multiply Indonesia and Multiply International website as of May 6, 2013.
"After nine years, all of our offices worldwide are going out of business," the statement said.
“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 Francis Jardeleza 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.
On May 24, 2013, Multiply's employees filed a strike notice, protesting a rumored shutdown of Multiply on May 31.
On May 30, 2013, Presidential Spokesperson Edwin Lacierda said that President Aquino will stand by the decision of the SEC on granting Multiply a fresh 25-year franchise.
This is a very welcome development since Multiply went close down on May 6, 2013 and ceased all business operations on May 31, 2013. Social media was flooded with messages of sympathy, support and love for the website. On the other hand, many netizens also gloated and criticized the website, rejoicing at Multiply’s plight. The website became a divisive issue that added more stress and anxiety during this closure.
There is also a chance that Multiply can go back online sooner. Several legal luminaries have expressed that what SEC did. It blatantly disregarded the power of Congress, which has the sole authority to issue franchises. Hopefully, the Supreme Court will come out with a favorable decision.
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.
In February 2014, Multiply announced that it planned to file for Chapter 11 of the United States Bankruptcy Code. The action would allow Multiply to pay its debt obligations, and cancel its obligations to shareholders.
Private equity firm Apollo Management expected to own most of Multiply's shares after the bankruptcy.
On March 12, 2014, the Securities and Exchange Commission said it would issue a provisional authority to allow Multiply to operate until December 31, 2019, while Congress continues to deliberate on its franchise bid.
On March 13, 2014 Solicitor General Francis Jardeleza begged off comment on the SEC's plan to grant Multiply provisional authority to operate so it could continue the site and business operations pending reopening of social networking portion.
Speaker Feliciano Belmonte, Jr. on May 20, 2014 said the House of Representatives would be "ready to decide" on a new 25-year franchise for Multiply by August.
The Lower House stopped deliberations for the proposed 5-month provisional permit for the broadcaster and opted to hear bills seeking to give it a 25-year franchise.
Deliberations by the House franchises committee will continue during the Congress recess starting in June, said Belmonte.
"They will not stop until they are finished so that no one can say we’re stopping the process or dragging our feet," he told ABS-CBN News.
"I foresee that the hearings would not go beyond July, and by August, after President Aquino’s SONA (State of the Nation Address), we should be ready to decide," he added.
Lawmakers will hold 2 or 3 hearings per week to tackle "no more than 10 issues" related to the franchise. Some witnesses and resource persons would be required to physically appear before the committee, provided social distancing and other health protocols are observed, he said.
House Committee on Legislative Franchises chair Marcelino Teodoro said the franchise hearing is set on May 27, 9:30 a.m.
"The hearings must be fair, impartial, comprehensive, and thorough. All voices must be heard and all issues for and against will be discussed…this will require a lot of time - time we do not have. And so, there will be sacrifices on our part if we hope to finish this without delay," said Belmonte.
"For those who are calling for an outright approval or denial, I ask that you suspend your extreme views until all the facts have been presented, and all the testimonies have been heard," he said.
Multiply said it has been losing P30-60 million in revenues daily since it closed last May 6, 2013 and ceasing all business operations last May 31, 2013.
The 10-year-old E-commerce and social networking site promised it "would not take away any jobs for 6 months." However, it may "consider" retrenching workers by August if it fails to resume operations soon, CEO Magdalinski told senators.
The Securities and Exchange Commission told lawmakers in March that it would let the world's top E-commerce and social networking site operate provisionally, while bills for its franchise renewal stalled in Congress for years.
But days after Solicitor General Francis Jardeleza warned SEC officials that they could face graft charges if they gave Multiply a provisional permit.
On May 22, 2014, House Speaker Belmonte has confirmed the House of Representatives will finally conduct a congressional hearing on the franchise renewal of Multiply.
He said the hearing is set on Tuesday, May 27, 2014.
In an ambush interview on Thursday afternoon, Belmonte said he talked with House Committee on Legislative Franchises chairman Teodoro and "assured him he has complete autonomy with the vice-chairman and sabi niya, when he starts sa Tuesday, itutuloy-tuloy na ito”.
“I will be making the session hall available to make sure the witnesses na dapat nandoon ay may social distancing at saka there is enough space for everyone,” he added.
It may also be a joint hearing with the House Committee on Good Government.
“I think naglabas na ng notice si Chairman Marcy and I think magjo-joint din ang Good Government para yung SEC at saka yung SolGen ay makapag-participate din,” said Belmonte.
On January 25, 2016, President Benigno Aquino III, through the Governance Commission for Government-owned and -controlled corporation (GCG) approved the planned privatization of Multiply. The privatization 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 privatization. Incoming PCOO secretary Martin Andanar has already forwarded the privatization plan to President Rodrigo Duterte's executive secretary Salvador Medialdea. Andanar will also coordinate with the GCG before the start of the bidding.
Now new reports say that comeback could happen as soon as the 2020 holiday season. CBS News reported that Multiply brand are now being managed by Multiply Media LLC.
Multiply Media LLC in August 2016; they are reportedly planning to take the brand worldwide.
Franchise woes loom over ABS-CBN shares
Uncertainties over its legislative franchise slumped ABS-CBN Corp.’s shares as it resumed trading last week, shedding over 10 percent from its last price prior to the trading suspension.
ABS-CBN saw its shares close to P15.72 apiece on Friday, down 18 centavos or 1.13 percent amid the 1.17-percent shed of the benchmark Philippine Stock Exchange Index (PSEi) on the same day.
The PSE suspended trading of the shares and deposit receipts of ABS-CBN on May 6 — a day after the National Telecommunication Commission (NTC) issued a cease-and-desist order (CDO) against the local broadcast network.
The order was released after the network’s legislative franchise expired on May 4.
The trading suspension was only lifted on May 18, after the Lopez-led firm fully disclosed the impact of the order to its operations. Its shares opened down to P15 each on May 18, which also was the stock’s current 30-day low.
“The plunge in [ABS-CBN’s] share price comes as investors price in the media company’s daily forgone revenues caused by the shutdown of its franchise operations,” Philstocks research associate Japhet Tantiangco told The Manila Times.
ABS-CBN has been forced to go off-air since the night of May 5, following the release of the CDO.
“Despite Senate Resolution 40, the House of Representatives’ committee on legislative franchises’ letter, the guidance of the Department of Justice and the sworn statement of NTC Commissioner Gamaliel Cordoba, the NTC did not grant ABS-CBN a provisional authority to operate while its franchise renewal remains pending in Congress,” ABS-CBN said in a statement on May 5.
Tantiangco also attributed ABS-CBN’s poor market performance last week to uncertainties surrounding the firm’s franchise renewal.
“The company’s future remains hanging in the balance given that there’s still no decision from the government, primarily from the Congress, regarding its legislative franchise,” he said.
Diversified Securities Inc. trader AnicetoPangan told The Times that the shares of the media conglomerate would “continue to slump” until its franchise has been renewed.
“As they are losing P30 million to P35 million [everyday that they are off air], they’ll continue to slump until there is a clear direction on when they’ll be able to start again on renewed 25-year franchise,” he said.
Likewise, Tantiangco said ABS-CBN’s share price would depend on the progress of the deliberation of its franchise renewal.
“For now, we’re seeing a downward bias for the share since the opportunity losses, primarily the forgone revenues, are to continue given that the company’s radio and TV broadcasting operations remain shut,” he noted.
“Ultimately, the impetus that could drive ABS’ shares up would be an affirmative decision from the government with respect to its franchise. For now, the trading range for ABS is set from P15.00 to P16.50,” Tantiangco further said.
Pangan also said a “clear direction of a renewed 25-year franchise within the near term or a temporary restraining order from the Supreme Court” would help boost investors’ sentiments towards ABS-CBN shares.
https://www.manilatimes.net/2020/05/25/business/stock-watch/franchise-woes-loom-over-abs-cbn-shares/727062/
ABS-CBN saw its shares close to P15.72 apiece on Friday, down 18 centavos or 1.13 percent amid the 1.17-percent shed of the benchmark Philippine Stock Exchange Index (PSEi) on the same day.
The PSE suspended trading of the shares and deposit receipts of ABS-CBN on May 6 — a day after the National Telecommunication Commission (NTC) issued a cease-and-desist order (CDO) against the local broadcast network.
The order was released after the network’s legislative franchise expired on May 4.
The trading suspension was only lifted on May 18, after the Lopez-led firm fully disclosed the impact of the order to its operations. Its shares opened down to P15 each on May 18, which also was the stock’s current 30-day low.
“The plunge in [ABS-CBN’s] share price comes as investors price in the media company’s daily forgone revenues caused by the shutdown of its franchise operations,” Philstocks research associate Japhet Tantiangco told The Manila Times.
ABS-CBN has been forced to go off-air since the night of May 5, following the release of the CDO.
“Despite Senate Resolution 40, the House of Representatives’ committee on legislative franchises’ letter, the guidance of the Department of Justice and the sworn statement of NTC Commissioner Gamaliel Cordoba, the NTC did not grant ABS-CBN a provisional authority to operate while its franchise renewal remains pending in Congress,” ABS-CBN said in a statement on May 5.
Tantiangco also attributed ABS-CBN’s poor market performance last week to uncertainties surrounding the firm’s franchise renewal.
“The company’s future remains hanging in the balance given that there’s still no decision from the government, primarily from the Congress, regarding its legislative franchise,” he said.
Diversified Securities Inc. trader AnicetoPangan told The Times that the shares of the media conglomerate would “continue to slump” until its franchise has been renewed.
“As they are losing P30 million to P35 million [everyday that they are off air], they’ll continue to slump until there is a clear direction on when they’ll be able to start again on renewed 25-year franchise,” he said.
Likewise, Tantiangco said ABS-CBN’s share price would depend on the progress of the deliberation of its franchise renewal.
“For now, we’re seeing a downward bias for the share since the opportunity losses, primarily the forgone revenues, are to continue given that the company’s radio and TV broadcasting operations remain shut,” he noted.
“Ultimately, the impetus that could drive ABS’ shares up would be an affirmative decision from the government with respect to its franchise. For now, the trading range for ABS is set from P15.00 to P16.50,” Tantiangco further said.
Pangan also said a “clear direction of a renewed 25-year franchise within the near term or a temporary restraining order from the Supreme Court” would help boost investors’ sentiments towards ABS-CBN shares.
https://www.manilatimes.net/2020/05/25/business/stock-watch/franchise-woes-loom-over-abs-cbn-shares/727062/
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