Korean internet company Naver Corp. will acquire Poshmark for approximately $1.2 billion, or $17.90 per share. The price represents a 15% premium on Poshmark’s closing stock price as of Oct. 3 and a 48% premium compared to the 90-day volume weighted average of Poshmark shares.
The transaction aims to create a global player in online fashion recommerce by combining Poshmark’s discovery-based social shopping platform and engaged community with Naver’s technological prowess in creating ecommerce experiences. Poshmark also will leverage Naver’s proven expertise and track record in Asia and its significant expertise from backing and investing in other fashion and consumer-to-consumer (C2C) ecommerce platforms globally.
Additionally, the combination accelerates Naver’s strategy to build a global ecommerce community portfolio to capture the growth in large markets around the world, including Poshmark’s home market of North America. Together, the companies expect to increase purchase conversion rates, deepen user engagement, create an industry leader in livestreaming commerce and enhance the unique relationship- and discovery-based experiences that are driving fast-growing recommerce verticals. Some of the shared strengths and synergies the combined company will lean on include:
- Content: Naver is home to a large number of bloggers and creators in Korea, while Poshmark is a leader in creators focused on style and fashion trends;
- Community: Naver has more than 36 million monthly users access its search portal and various online community services, and its metaverse platform, Zepeto, is the second largest metaverse app in the world —his reach will be enhanced with Poshmark’s more than 80 million registered users;
- Empowerment: Naver enables ecommerce for SMBs in Korea and enables publication of digital comics through Naver Webtoons, while Poshmark lets sellers list and sell items from their closets at home through its social commerce platform.
“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 in a statement. “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.”
Additionally, the acquisition will enable Poshmark to roll out livestreaming capabilities through Naver’s Shopping Live solution, which earned over $25 billion in GMV transacted in 2021. Naver expects that the enablement and enhancement of live streaming capabilities within the Poshmark platform will transform the shopping and selling experience and strengthen Poshmark’s community by allowing for greater social networking and engagement.
“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,” said Manish Chandra, Founder and CEO of Poshmark in a statement. “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.”
Upon completion of the transaction, Poshmark will become a standalone U.S. subsidiary of Naver and will continue to be led by Chandra and its current management team. Poshmark will continue to operate under its existing brand, as well as maintain its employee base, Poshmark community and headquarters in Redwood City, Calif.