Influencer Gushcloud acquired by Yello Digital Marketing

Yello Digital Marketing (YDM) recently bought a majority stake in Gushcloud, a Singapore-based influencer and content marketing group, in a multi-million deal. YDT is a Korean digital media agency under Yello Mobile group, a conglomerate made up of over 70 companies offering various services from shopping media, digital apps, content advertising and marketing, to online travel and offline services.

Gushcloud has 80 employees in Singapore, Indonesia and Malaysia and was founded in 2011 by young entrepreneurs Althea Lim and Vincent Ha. Both have vast experience in advertising and youth event marketing.

Yello Digital Marketing obtained 65% share from Gushcloud, though no apparent price was divulged by the two companies, they only gave an eight-figure clue.  

Gushcloud will retain its name and the founders Ha and Lim will remain as CEO and chief revenue officer. YDM will move its Southeast Asian headquarters in the Singapore Central Business District after the acquisition, ready to accommodate up to 200 employees.

Gushcloud was recently involved in a controversy when online blogger Wendy Cheng posted online a brief written by Gushcloud employees for its influencers. The brief revealed how Gushcloud offers incentives to its influencers- including cash and VIP invites to Singtel events- by complaining about the services of Singtel's competitors M1 and StarHub.

Singtel was warned by Infocomm Development Authority of Singapore. This unwanted event made Singtel cut its ties with Gushcloud.

Apparently, YDM was not appalled, and is willing to move on after that incident. In an interview with Today Online, Mr Ha was quoted saying Mr. Lee Sang Seok, CEO for YDM was very understanding about the matter.

"He saw that we made changes to our processes and internal controls after the incident. But I think more importantly, he said that entrepreneurs need to grow and learn from these mistakes, and I think we have been very open about this with them," Mr. Ha explained.