Key facts
- Philippine billionaire Lance Gokongwei is acquiring a 15% stake in PhilWeb Corp.
- Gokongwei's investment amounts to 2.03 billion pesos ($33 million).
- PhilWeb's authorized capital stock will increase to 3.6 billion pesos.
- The stake represents 20% of PhilWeb at two centavos per share.
- ePLDT will gain three board seats on PhilWeb's 15-member board.
- PhilWeb operates over 200 Internet Sports Betting and 40 Internet casino stations.
Philippine billionaire Lance Gokongwei is acquiring a 15% stake in online gaming technology firm PhilWeb Corp. for 2.03 billion pesos ($33 million). This investment is set to bolster PhilWeb's expansion into artificial intelligence and enhance Gokongwei's presence in the gaming sector.
PhilWeb's authorized capital stock will be increased from 2.6 billion pesos to 3.6 billion pesos to accommodate Gokongwei's entry. The investment equates to a 20% stake at a price of two centavos per share, according to PLDT, the parent company of ePLDT, which is making the investment. Following the transaction, ePLDT will be entitled to three seats on PhilWeb's 15-member board of directors.
PhilWeb is described as a niche player in the internet gaming market, holding a license from the Philippine Amusement and Gaming Corporation (PAGCOR). The company operates more than 200 Internet Sports Betting stations and over 40 Internet casino stations across the Philippines.
This move is expected to strengthen PLDT's gaming content offerings across its fixed line and mobile broadband services, including through its subsidiary Smart Communications. PLDT stated that PhilWeb's business model is heavily reliant on PLDT's telecommunications networks to support its revenue and profit growth, aligning with the anticipated expansion of the overall gaming industry.
The investment in PhilWeb aligns with ePLDT's strategy to invest in online gaming content, building on previous investments in Level Up Philippines, Inc. and netGames Inc. Furthermore, ePLDT intends to support PhilWeb in expanding its internet sports betting and casino stations nationwide, leveraging the telecommunications network resources of the PLDT Group.