Thursday March 9, 2006 01:31
SK Communications buys Egloos
SK Communications owner of Cyworld has acquired Egloos for KRW 1.5 billion (US$1.5 million). SK Communications is subsidiary company of SK Telecom, the biggest telecommunication company in Korea. It has four services, 1) Nate.com (portal) 2) Cyword (social networking) 3) NateOn (messenger) over MSN messenger 4) Tong (web page scrapping).
Egloos is the leading independent blog service provider in Korea. You can think Egloos is equivalent to Typepad or WordPress in the US. Egloos has close to 150,000 users and has approximately 10,000 posts uploaded everyday by their loyal users. Egloos is definitely a major upgrade to SK Communications’ existing blog service, Paper. Paper is a service that was developed internally at SK but it failed miserably. It probably has maybe 100 posts per day.
It’s not sure how SK Communications plans to integrate Egloos with its existing services but I have a feeling that Egloos may end up being operated independently from SK Communications. Knowing the Egloos users, many of their key users will probably flee the service if SK Communications tries to change the current service identity of Egloos.
But, SK communications has aquired many internet services including Lycos Korea, Netsgo and Cyworld. Some of these were closed and changed their own color, so many users felt to be forced out in that case. So many egloos’s users concern to loose egloos’s own culture by big company.