KUALA LUMPUR: While the recent acquisition of social network Friendster by MOL Global sent speculation flourishing over its price tag, to as high as US$100 million (RM342 million), the actual figure stands at US$39 million — much less than previous valuations or its total raised funds of US$45 million.

Speaking from the US, Ganesh Bangah, CEO of MOL Global, confirmed the amount and said that the acquisition was won in an open tender, with Chinese game and instant messaging company Tencent also making a bid.

"I paid a fair price," Bangah said. Friendster's shareholders had been shopping around for an Asian buyer considering its user base is mainly concentrated in the region. MOL's principal shareholder is Datuk Vincent Tan, CEO of Berjaya Corporation Bhd.

According to reports, the total amount paid to Friendster's shareholders went down to US$26.4 million after a US$13 million deductions in secured debts, fees and bonuses to CEO Richard Kimber and other executives.

Friendster started out as one of the pioneers in social network platforms and today has fallen behind MySpace and Facebook to third place with 75 million registered users. With 90% of its traffic coming from Asia, the acquisition is seen as a move to strengthen its foothold in the region when coupled with MOL's 500,000 physical and virtual payment channels in markets such as Malaysia, Singapore, Indonesia, the Philippines, Thailand and India.

MOL and Friendster entered into a partnership last October to integrate and implement the payment platforms called Friendster Wallet and Friendster Gift Shop.

According to Ganesh, the initial partnership was a precursor towards building a successful social media site and online marketing channel with an integrated payment platform and content network which includes games, goods, gifts, music and video in Asia.