Naver buys Poshmark for $1.2 billion

Naver buys Poshmark for $1.2 billion

South Korean search engine giant Naver has agreed a deal to buyout U.S. fashion resale marketplace Poshmark for $1.2 billion in cash. The deal will see Naver pay $17.90 for each Poshmark share.

Once the acquisition closes, Naver plans to operate Poshmark as an independent subsidiary, and would retain its current management team led by CEO Manish Chandra while also maintaining its headquarters in Redwood city, California.

Poshmark prides itself as the largest fashion consumer-to-consumer retailer in North America, and the acquisition will combine Poshmark’s vast user base with Naver’s fast growing social shopping platform, where users buy and sell used apparel. It will also aid Naver in its entry into the U.S. e-commerce market.

Naver’s purchase of Poshmark is an indication of the troubles the secondhand clothing industry faces with another example being Etsy acquisition of Depop for $1.62 billion in 2021.

Investors also questioned the timing of the acquisition, as rising inflation has substantially restricted the spending ability of individuals, with people also preferring to shop in physical stores as the splendor that Covid gave to online platforms simply fades away.

But those troubles don’t dent the vast growth opportunity in the sector which continues to become an integral part in the whole e-commerce sphere.

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