ABS-CBN buys 5% stake in Multiply
By Elizabeth Sanchez-Lacson
Philippine Daily Inquirer
First Posted 05:10:00 11/18/2008
Filed Under: Television, Company Information, Internet
ABS-CBN Broadcasting Corp., through its unit ABS-CBN Global, has purchased five percent of global interactive website owner Multiply Inc. for $5 million in a bid to boost advertising revenues ahead of a projected economic slowdown next year, a company official said.
ABS-CBN Broadcasting is looking at raising its stake in Multiply, the operator of the social networking website Multiply.com, to about 10 percent over the next two to three years, for a total investment of $9-$10 million, ABS-CBN Interactive head Paolo Pineda said.
The initial purchase of five percent involves 2.5 million shares of Series P common shares at $1.9 per share.
Pineda said Multiply.com increased its membership to three million Filipinos worldwide this year from 1.5 million last year, and generates 400 million page views a month.
ABS-CBN Global distributes TV programs produced by ABS-CBN Broadcasting, and other Filipino-based content, outside the Philippines, principally on The Filipino Channel.
Multiply is a privately owned corporation based in Boca Raton, Florida. Its flagship website, which was launched in 2004, allows users to share pictures, video and music, and a venue for generating discussions, feedback and interest from and among its users.
Campos Lanuza & Co. said in a daily research note, “There is no exit mechanism at this point. Multiply faces tough competition with Facebook, MySpace, MSN, YahooGroups, YouTube.” Edited by INQUIRER.net
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