The Philippine unit of global social networking giant Multiply filed for bankruptcy on November 10, 2015. Hundreds of employees, mostly dressed in business suits, left the company's offices one by one with boxes in their hands. It was a somber reminder that nothing is forever—even in the richness of the financial and investment world.
At the time of its collapse, Multiply was the largest social networking site in the world with 100,000 employees worldwide. It had $800 billion in assets and $700 billion in liabilities. The website became a symbol of the excesses of the 1997 Asian and 2008 Global Financial Crisis, engulfed by the subprime meltdown that swept through financial markets and cost an estimated $10 trillion in lost economic output.
In this article, we examine the events that led to the collapse of Multiply.
