Poshmark Acquired by South Korea’s Naver for $1.2B
South Korean internet giant Naver is acquiring U.S. e-retailer Poshmark for roughly $1.2 billion, paying $17.90 per share in the all-cash deal, reports CNBC. The companies announced the purchase on Monday, and expect it to close by Q1 2023, subject to approval by Poshmark stockholders and “the satisfaction of certain other customary closing conditions.”
Naver is South Korea’s largest internet company and operates a search engine, e-commerce platform and other services. The companies said the deal will deepen Naver’s reach in online retail, while allowing Poshmark to enter international markets. Poshmark is a popular online retail site that lets people shop from the closets of other users. The company went public in January 2021 at $42 a share. Since then, the stock has fallen sharply, tumbling alongside the rest of the tech industry.
Total Retail's Take: The pairing of Poshmark and Naver took some within industry by surprise, but that's not dampening the positive outlook of executives from both companies. "Poshmark is a natural fit for our business — our two companies share a common set of values and vision around content, community and empowerment," said Choi Soo-Yeon, CEO of Naver. "The combination will create the strongest platform for powering communities and re-fashioning commerce."
The recommerce market has lost some traction in recent months, but Poshmark and Naver hope to reinvigorate the market together. The transaction will "create a global player in online fashion re-commerce," according to a press release, and help Poshmark deliver "an unparalleled experience that's simple, social, fun and sustainable," commented Poshmark Founder and CEO Manish Chandra. This deal shows that industry players still have faith in secondhand market's longevity globally, if enhanced with advanced technology.
Kristina Stidham is the digital content director at Total Retail and sister brands Women in Retail Leadership Circle and Women Leading Travel & Hospitality at NAPCO Media. She is passionate about digital media and handles video, podcast and virtual event production for all brands. You can often find her at WIRLC, TR, WLT&H or industry events with her camera and podcasting equipment—or at home on Zoom—recording interviews with thought leaders and business executives.
Kristina holds a B.A. in Media Studies and Production from the Temple University Klein College of Media and Communication in Philadelphia. Go Owls! When she's not in the office, she loves to go on long walks, sing around the house, hangout with her family and two pet guinea pigs, and travel to new places.