The Hong Kong-based telco giant Pacific Century CyberWorks has shut down its online advertising subsidiary, AdSociety, citing continued weakness in the market as justification for the decision that will see more than 100 employees lose their jobs.
The decision came into effect on the 3rd of October, which is a date only 14 months following the company's commencement of business. During its brief lifespan, the company in which PCCW held a 79% controlling stake made significant progress to build a pan Asian advertising sales network providing a combination of online, broadband and wireless advertising and marketing services to more than 250 customers, most of whom are traditional advertisers, and more than 2,000 member websites.
The shuttering of the firm follows several high-profile acts of closure, reorganization and consolidation within the industry (many incidents of which are reported within the Net-Ads Advertising Graveyard), and has been blamed primarily on the present uncertain market conditions, which were expected to adversely affect the company's operation if it were to attempt a survival bid. The decision is also in line with PCCW's previously announced strategy of streamlining the non-core businesses of the group and concentrating on its core business of integrated telecommunications and related broadband services.
The closure will affect over 100 employees in Hong Kong, Australia, China, Japan, Korea, Singapore and Taiwan, as well as more than 1000 individual web publishers who had outsourced their ad sales and delivery efforts to the firm.
In a statement made by Pacific Century CyberWorks, the company expressed that "[w]hile PCCW is concerned about the affected individuals and partners, it was necessary to make this decision in the best interests of shareholders, to help meet PCCW's goals, and to ensure PCCW's competitiveness."
Affected stakeholders or others interested in seeking additional information about this announcement and its consequences for the firm have been invited to direct their enquiries at either email@example.com or firstname.lastname@example.org.