ABS CBN buys into Multiply
In a surprise move, TV giant ABS-CBN has announced yesterday that it has bought a minority stake into social networking site, Multiply.
The purchase was for 5% of Multiply which costs $5 million or close to Php250 million.
A year ago this month, ABS-CBN first went into an advertising deal with Multiply. It looks like that deal got a lot of traction and the media giant saw great potential.
ABS-CBN will continue to monetize the social networking site thru traditional CPM-based advertising and offering mobile service. They’ve even added a clause that will enable ABS-CBN to buy as much as 10% of Multiply. I think they’d be able to recover that investment in less than 5 years.