Daum Kakao sees reach with fast-growing Path

The nation’s largest SNS company Daum Kakao has acquired the U.S.-based social network site Path and its messenger platform Path Talk in a bid to broaden its global presence, the company said on Friday.

In Indonesia, Path is one of the leading and fastest growing social network sites with over 10 million monthly average users.

With the acquisition, Daum Kakao will establish a foothold in one of the most heavily populated countries in the world, with 250 million people.

“Path is a mobile platform with a lot of loyal users and lots of content with heavy traffic. It has great growth potential,” Daum Kakao said in a statement.

“Path has recently seen rapid growth in user counts in the Middle East as well, and we expect good synergies with Daum Kakao as we seek to grow more globally.”

Path was created by Facebook platform developer Dave Morin and Napster founder Shawn Fanning in November 2010. It was created to encourage “high-quality” connections of closest friends and family, limiting each user’s social network to 150 friends.

“We created Path as a network that brings users a source of happiness, meaning and connection. We’re very proud of what we have accomplished over the last five years together,” said Dave Morin in a statement.

“We believe Daum Kakao, with its deep understanding of the Asian market and experience in leading mobile innovation, will be able to provide Path users with additional resources and value,” he said.

At the news, Daum Kakao’s share rose sharply on the Korean stock market Kosdaq. It closed 9.52 percent higher than the previous trade, at 117,300 won ($105.80).

BY PARK JUNG-YOUN [park.jungyoun@joongang.co.kr]