Cyworld, a social networking service (SNS) in the memory of the nation, is looking for a new owner again. It has been four months since Psy Communications took over the business rights last year.
According to the information and communication (IT) industry on the 11th, KOSDAQ-listed Sonny, which owns a 40% stake in Cycoms, decided to sell the stake and Cyworld business rights, and confirmed three companies that recently announced their intention to acquire the company as shortlists. The list is known to include global fintech companies.
The reason for the sale is that the financing necessary for the restoration project was not carried out smoothly.
After acquiring Cyworld goodwill from CyworldJ last year, Cycoms started to recover 32 million member information and 17 billion data. Initially, the scope of restoration was scheduled to be confirmed in the first quarter of this year and actual restoration work began, but no related work has been done at all for two months since January due to difficulties in cost.
It is known that Cycoms employees have also been on unpaid leave since the beginning of the year until recently.
When the sale is completed in the future, the company that took the business rights is expected to resume data restoration. However, considering the current situation, the opening of the Cyworld service, which was scheduled for the second half of this year, is more likely to be delayed.
In response, a Sonid official explained, “There has been no decision yet.”
Analysts say that Cyworld’s brutal history, which continues to change its owner, is repeating itself.
Cyworld, which was launched in 1999, was acquired by SK Communications in 2003 after being on a roll with the ‘mini-hompi’ service. Since then, the number of subscribers has exceeded 30 million and has gained more than 100 billion won a year from the sales of acorns, which are goods in the service.
However, the service ended in 2019 as the number of users decreased due to the failure to keep up with the era of smartphones.
Since then, Cyworld Jet took over the business rights in 2021, but it did not produce any results, and in November last year, another company, Cycoms, took over. Then, the sale of related rights is being pursued again this time. If the sale is completed this time, Cyworld will meet its fourth owner.
