Naver announces plans to acquire Poshmark
South Korean search giant, Naver, is set to acquire secondhand apparel marketplace Poshmark for $1.2 billion in cash.
The pair expect the deal to close by Q1 2023, subject to approval by Poshmark stockholders and “the satisfaction of certain other customary closing conditions.”
Poshmark will become a standalone subsidiary of Naver, led by CEO Manish Chandra and the current management team. It’ll continue to operate under its existing brand, and maintain its staff, user base and headquarters in Redwood City, California.
Choi Soo-Yeon, CEO at Naver, says: “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 its global growth.”
He adds: “Poshmark is a natural fit for our business – our two companies share a common set of values and vision around content, community and empowerment.”
“Bringing Naver and Poshmark together will immediately put us at the forefront of creating a new, socially responsible, and sustainable shopping experience designed around sellers of all sizes and interests – from individual and influencer sellers to professional sellers, brands and specialty boutiques – and a large, loyal, and highly engaged social community.”
Chandra comments: “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.”
He continues: “This is a highly compelling opportunity for our employees, who will benefit from being part of a larger, global organisation with shared values and complementary strengths. This transaction also delivers significant and immediate value to our shareholders.”
“Longer term, as part of Naver, we will benefit from their financial resources, significant technology capabilities, and leading presence across Asia to expand our platform, elevate our product and user experiences, and enter new and large markets.”
“I look forward to partnering with Naver as we take our company into its next phase of growth.”
