TechCrunch: South Korea’s Naver Acquires US Fashion Reseller Poshmark for $1.2B
South Korean internet conglomerate Naver has announced the proposed acquisition of American secondhand apparel marketplace Poshmark. In the event that the transaction goes through, Poshmark will be a standalone subsidiary of Naver. The cash deal is estimated to worth around $1.2 billion. All things being equal, the deal should be completed by Q1 2023.
In a press release, the CEOs of Naver and Poshmark stated why the deal makes sense for both parties. Poshmark CEO Manish Chandra said:
“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. This transaction will allow us to deliver significant value to our shareholders. I look forward to partnering with Naver as we take our company into its next phase of growth.”
Recent reports claim that Poshmark boasts of more than 80 million users. Notwithstanding the massive customer base, the performance of the apparel marketplace has been quite erratic. In 2020, the company reported a profit of $25.2 million. Conversely, a loss of $44.4 million was reported. Recently, fashion resale app, Depop, which was among Poshmark’s competitors in the secondhand clothing sector was acquired by Etsy for $1.62 billion.
Source: Naver agrees to acquire fashion marketplace Poshmark for $1.2B
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