ABS-CBN Broadcasting Corporation, through its subsidiary ABS-CBN Global Ltd., has bought a five percent stake in the US-based social networking site Multiply.
In a statement, ABS-CBN said it purchased 2,524,488 shares of Series P Common Stock in Multiply, Inc. at a purchase price of $1.9806 per share, or a total purchase price of $5,000,000.93 last November 13.
Under the stock purchase agreement, ABS-CBN Global may, during the two-year period following the initial purchase of shares, acquire additional shares in Multiply to bring its ownership to as much as 10 percent of the total authorized stock of Multiply.
ABS-CBN Interactive head Paolo Pineda said the partnership complements ABS-CBN and Multiply since both companies generate their own content, whether branded or user-generated.
"Multiply is a natural fit for ABS-CBN. It is the social network that is most consistent to our business model because they have focused on photo, video and blog features compared to the other social networks such as Friendster and Facebook, which focus on connecting friends and running applications. This puts together content and communities around the content, whether it is ABS-CBN-branded or user-generated," he told abs-cbnNEWS.com.
He said partnering with Multiply is consistent with ABS-CBN's "Kapamilya" theme, which focuses on the Filipino family. He said many of the more than three million Filipino Multiply users use the site to share photos, videos and blogs about their families and friends.
Pineda said ABS-CBN has long term plans for Multiply including more Internet advertising and the launch of mobile services for Multiply users in the Philippines.
"We will monetize the network through advertising and mobile services. With this investment, we now have a comnmitment to the social netwokring industry and we believe it is here to stay. Multiply pieces all of our media and community together," he said.
abs-cbnNEWS.com is the online news department of ABS-CBN Interactive Inc., a subsidiary of ABS-CBN Broadcasting Corp.