Korean digital media agency Yello Digital Marketing (YDM) Group has acquired a majority stake in digital marketing agency Gushcloud in a “multi-million dollar” deal.
Following the acquisition, YDM will move its SEA headquarters to Singapore. In a press statement, the company said Gushcloud CEO Vincent ha and co founder Althea Lim will retain minority share of the company. The two will also be taking up strategic roles within YDM and will be tasked to lead its SEA expansion plan.
The social media agency was first launched in 2011 and has a presence in Singapore, Malaysia and Indonesia. It has 80 people in the company and following the acquisition, it hopes to house up to 200 employees in a new office in the Central Business District.
YDM is part of Yello Mobile group, South Korea’s latest rising star in mobile media 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.
Commenting on the acquisition 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.”
He added that 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,” he said. Ha added that 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,” he said.
YDM’s chief executive officer Lee Sang Seok said the “youthful entrepreneurship and can-do spirit at Gushcloud were truly infectious and inspiring.” He added that 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, YDM hopes to tap the huge potential in content and data to meet our clients’ needs in the dynamic digital world,” Lee said adding that negotiations for the deal first started in 2014.
Meanwhile, Gushcloud recently found itself caught in a negative ad campaign scandal for Singtel where its bloggers were told to write negative reviews about the competition. Following which it decided to work with Advertising Standards Authority of Singapore to create a set of ethical guidelines.