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Social media influencer marketing company, Gushcloud, is not dead yet.
It looks like they have bounced back though.
A Korean digital media agency, Yello Digital Marketing (YDM) Group, has acquired a majority stake in the Singapore based Gushcloud Pte Ltd.
No details was revealed on the exact dollar value of the deal, but it is described as “multi-million dollar” in a press release.
YDM will shift its Southeast Asian headquarters to Singapore after the Gushcloud deal, to house up to 200 employees in a new office in the Central Business District.
YDM is part of Yello Mobile group, a mobile media group in Korea with a portfolio of more than 70 companies specialising in shopping media, digital apps, content advertising and marketing, online travel and offline to online services. YDM is Yello Mobile group’s advertising and digital marketing division offering online and offline marketing services to more than 5,000 clients in five countries.
Two questions on my mind now:
- Does YDM know about the damages to Gushcloud’s reputation after the Xiaxue spat?
- What would Xiaxue do next.
Gushcloud is an influencer and content marketing group founded in 2011 by Singapore entrepreneurs Vincent Ha and Althea Lim, both young entrepreneurs with experience in advertising, video production, and youth event marketing. Gushcloud employs 80 people in offices in Singapore, Malaysia and Indonesia.
Under the deal, Ha, Gushcloud Chief Executive Officer and Co-Founder, and Lim, Chief Revenue Officer, will retain a significant minority shareholding and will take on strategic roles within YDM, in particular, spearheading its Southeast Asian expansion plans for content/influencer marketing.
Ha said: “We are truly excited to become part of the YDM group. Their vision to build Southeast Asia’s number one digital media and marketing company is completely aligned with ours. Sharing, learning and growing are core tenets of the YDM family and are values that Althea and I believe in.
“YDM is creating a group that can provide the full suite of digital strategy, marketing and creative services across mobile media and social networks. A key pillar in its vision for service offerings includes viral and content marketing.”
“Korean brands are taking Southeast Asia and the rest of the world by storm, dominating in mobile phones, household appliances, skincare, fashion, entertainment and pop culture. Gushcloud and its sister companies look forward to working with the many of these Korean brands to help them stand out from the clutter in the online world.”
YDM’s Chief Executive Officer Lee Sang Seok said: “We are pleased to welcome Gushcloud into our family. The youthful entrepreneurship and can-do spirit at Gushcloud were truly infectious and inspiring. Within a short span of four years, they have built a leading influencer and content marketing business in Southeast Asia and we believe that we can create great synergies from the combination of our Korean entrepreneurs and their Southeast Asian knowledge and know-how.”
Lee added: “Singapore is a strategic base because of its location, its reputation as an established regional hub for businesses and the sophistication of its consumer markets. Through Gushcloud, we hope to tap the huge potential in content and data to meet our
clients’ needs in the dynamic digital world.”
The deal followed protracted negotiations which began last year and culminating in the 17th acquisition for YDM, and its first in Singapore.
I think the 3rd question you should ask – Out of these multi-million dollars deal, how much is done in cash? Yello has done so many acquisitions. I am vey doubtful they have cash to acquire. Likely, they did so through issuing of new shares to the owners of acquired entity.