MANILA, Philippines (The Adobo Chronicles, Manila Bureau) – It is the ‘B’ word most businesses dread the most: bankruptcy. And Rappler and its parent company Rappler Holdings, are not immune from it.
Today, Rappler CEO Maria Ressa announced that her online news source is planning to file for bankruptcy.
As if the Securities and Exchange Commission (SEC) order cancelling Rappler’s media license for violation of foreign ownership laws was not enough, Rappler is having a difficult time raising its P5 million online fundraising goal. After many months, it hasn’t quite reached 50% of its goal.
For what seemed like good news at first, Rappler foreign investor Omidyar Network announced it was donating its P78 million investment to Rappler’s senior managers. The donation is subject to a 30% donor’s tax. It is doubtful if the Rappler managers will invest what they will receive from Omidyar back into Rappler Holdings.
Now, the Bureau of Internal Revenue has filed a tax evasion case against Rappler, to the tune of P133 million!
Whichever way one looks at it, Rappler will be in the negative.
Hence its plan to file for bankruptcy.
So goodbye Rappler. It was good while you lasted.