ABS-CBN now owns 5% of social networking site Multiply.com

The other day while watching television, I commented to my wife why these local television networks wouldn’t setup their own social network site instead of using multiply. It’s a logical business extension of their media business.

Well I guess, I spoke too soon because ABS-CBN Global Ltd has bought a 5% stake in the social networking site Multiply. The stocks (about 2.5M) was purchased at $1.9806 each totalling to about $5 million USD.

Under the purchase agreement, ABS-CBN Global can bring up it’s ownership up to 10% of the authorized capital stock of Multiply Inc. within a 2-year period. It was not indicated at what price the additional stock purchases, if any, will be based.

Multiply, Inc.’s membership has grown to 10 million members who upload more than 2,500,000 photos and 20,000 videos every day. Multiply is still a privately held US company up to now. It started its existence on 2003 and has received several million dollars in funding.

It would be interesting to see how it will perform once it goes public. ABS-CBN Global may stand to earn several fold of their investments once Multiply goes public.

[source: ABS-CBN News]