(Yicai Global) Feb. 13 -- China’s popular video website AcFun restarted operations yesterday after its website and app shut down for 11 days, but it did not reveal the source of funds it used to reactivate after suffering an apparent cash crunch following alleged financing difficulties, with many of its staff reportedly jumping ship.
AcFun announced its comeback on its Weibo account yesterday. Its Weibo account released a crying emoji that said it wanted to survive for another 500 years when announcing the site’s closure Feb. 2.
It recommenced payment of salaries to former and existing employees yesterday, finance.qq.com reported. The company defaulted on salary payments to nearly 200 employees in November and December, media alleged Jan. 31. Rumor attributed AcFun’s cashflow problems to stalled financing plans. Yunfeng Capital, a unit of Alibaba Group Holding Ltd., planned to participate in its financing by acquiring a 20 percent stake in December, but this funding has not yet materialized.
AcFun was China’s first video website to adopt a barrage-based interactive mode. Founded in 2007, it initially screened cartoons for youngsters, but then began to offer various films and television productions. The site also allows users to share their videos. Its competitor Bilibili is a similar page founded by an AcFun user in 2009.