ePLDT to sell Digital Paradise stake to IPVG unit

MANILA, Philippines - ePLDT, the wholly owned information and communications technology of Philippine Long Distance Telephone Co. (PLDT), has entered into a share purchase agreement for the sale of its 75-percent interest in Digital Paradise Inc. to IP E-Game Ventures Inc. (E-Games) for an undisclosed amount.

Digital Paradise owns and operates the Netopia brand of Internet cafes. The transaction is subject to a 45-day due diligence period and certain closing conditions.

Under the agreement, E-Games, a subsidiary of technology conglomerate IPVG Corp., will purchase ePLDT’s 97.55 million shares of stock in Digital Paradise, making it 75-percent owner of the outstanding capital stock of Digital Paradise.

Strategic minority investors include The Philippine Star group and EStore Exchange, an affiliate of GMA Network Inc.

E-Games chief executive officer Enrique Gonzalez said the Internet café business is a strategic sector of their company. “With the signing of this agreement, we are one step closer to establishing a strong presence in that sector,” he explained.

He revealed that they plan to provide additional investments for Netopia’s expansion.

The Netopia brand is the largest chain of Internet cafes in the country and consists of 71 companyowned and 34 franchised branches.

Netopia serves over 1.5 million cus tomers monthly and uses high-speed Internet provided by PLDT.

Netopia also has a broad customer base, including large corporate customers for their training, recruitment, and advertising needs. The company likewise serves retail customer catering to their Internet surfing, gaming, digital printing,

and electronic load needs.

E-Games said the purchase of Digital Paradise will give it access to a large network of Internet cafes where it can launch and promote its games.

Officials noted that one of EGames’ objectives is to increase utilization at Netopia by channeling more of its 12 million users to Netopia Internet cafes. E-Games alsobelieves that it can increase advertising spending at the cafes by providing

advertising customers with an additional advertising medium.

E-Games is one of the leading online game publishers in the country, offering a portfolio of online games consisting of massively multiplayer online role playing games (MMORPGs) and casual online games. It pioneered the free to play business model wherein gamers are not required to pay a subscription fee to play online games.

Instead, gamers are given the option to purchase “in game items” to enhance their gaming experience.

This is done through the sale of virtual currency or e-points that are used to purchase these in-game items.