Late Thursday, Path Inc. – the 5 year old company behind the social network of the same name – announced that they had sold their two most popular apps, Path and Path Talk, to South Korean internet giant Daum Kakao. This deal, though the terms and monetary figures were not released, is strictly an asset acquisition; Path Inc. will continue to operate, and no employees are being moved as part of the deal.
The acquisition brings an end to one of the most up-and-down journeys of the past few years. Path began as a darling of the tech industry, attracting a huge amount of early adopters, and a whopping $77 million in venture financing. Outside of the early adopters, the app would never really gain a solid user base in the U.S. However, the app would gain a huge base of users in Southeast Asia, primarily in Indonesia and Saudi Arabia. Path’s success in Asia makes the sale to Daum Kakao a natural fit. In a blog post announcing the sale, Dave Morin – Path CEO and Co-Founder – noted that both apps would remain unchanged:
What does this mean for you? Nearly everything you have come to love about Path and Path Talk will remain as is. Daum Kakao’s extensive experience in mobile innovation along with a network of millions of users will ensure continued and reliable service. Future product updates will continue to improve connecting, sharing and communicating in the Path community.1