South Korea’s Naver to acquire e-commerce firm Poshmark in $1.2bn deal
Naver acquisition of Poshmark : South Korea’s largest internet company Naver is set to acquire US-based social e-commerce marketplace Poshmark in a deal worth $1.2 billion.
The transaction includes the purchase of all of the issued and outstanding shares of the NASDAQ-listed Poshmark for $17.9 per share in cash, representing a premium of 15% closing stock price of the company as of 3 October 2022.
Naver is home to a huge number of bloggers in South Korea and many digital creators of stories (Wattpad) and comics (Webtoons) globally, while Poshmark is specialized in creating unique styles and fashion trends, including the growing K-Fashion apparel segment.
Naver acquisition of Poshmark is expected to help the former expand and diversify its search-driven e-commerce business into the global secondhand C2C market for fashion.
Currently, Poshmark has a community of over 80 million registered users and generated approximately $2 billion in gross merchandise value (GMV) in 2021.
Choi Soo-Yeon — Naver CEO, commenting on Naver acquisition of Poshmark, said: “The combination will create the strongest platform for powering communities and re-fashioning commerce. Poshmark is the definitive brand for fashion in the United States that provides a social network for buying and selling apparel. Naver’s leading technology in search, AI recommendation and e-commerce tools will help power the next phase of Poshmark’s global growth.”
Founded in 1999, Naver currently has more than 36 million monthly users who access its search portal and various online community services. Its metaverse platform, Zepeto, is said to the second largest metaverse app in the world.
Commenting on Naver acquisition of Poshmark, Manish Chandra — Poshmark Founder and CEO said: “The opportunity to join forces with Naver – one of the world’s leading and most innovative and successful internet companies – is a testament to the strength of our brand, operating model, and what we’ve built over the last decade with our talented team and amazing community.
“Our industry continues to evolve at a rapid pace, and we are excited to continue to lead the future of shopping by providing our community with an unparalleled experience that is simple, social, fun and sustainable.”