According to the latest reports, Cyworld is set to make another comeback by relaunching its business under a new owner. Cyworld was previously known as the social media giant that was based in South Korea. It has been reported that the firm is relaunching its services with aims to regain its former glory of being the giant in the industry.
As per reports from HangukKyungjae, the firm is set to relaunch under the guidance and governance of a new owner. It has been revealed that the owner is the consortium of five firms that are based in South Korea. So far, the names of the consortium firms are anonymous except for one that is SKY E&M.
It has been confirmed that Cyworld has been acquired from its former owner at a very low price. It has been revealed that the price at which the company was sold by the former owner was just $897,000.
The media outlet has confirmed that the amount paid to the former owner of Cyworld is the equivalent that was owned by the employees of the company, which was still due. This goes onto show that the firm in actuality was sold for $0 as the money paid for the acquisition was for the sake of the former employees.
According to stats, the social media outlet Cyworld still has a lot of worth and reputation in the country. Initially, Cyworld was launched in South Korea back in 1999, and over-time, it gained a lot of success and popularity. In the 2000s, it was reported that 25% of the overall nationals in South Korea were active users of Cyworld at the peak of its business.
Later, the social media platform was bought out by SK in 2003, which is a business conglomerate. With this development, the company was able to expand its network into other Asian countries. One of the most prominent countries it managed to target after South Korea was China.
However, the firm became prey to several issues such as non-domestic social media platforms and data leaks, resulting in the company’s decline. The decline to the company’s reputation started in 2011 and went all the way up to 2016. Eventually, the firm ended up being sold off to the company known as Aire.
It was later revealed that under new ownership, the firm tried making its comeback with a new platform. The firm tried launching itself as a cryptocurrency platform and ended up raising around $500,000 from the sale of tokens. The company was able to generate the funds from the sale of the Cling tokens. However, the sales were not long-lived as the price of the token plunged all the way to the bottom.