South Korea’s Naver to Buy Poshmark in Bid to Boost eCommerce

New and used apparel and home goods reseller market Poshmark said it is being acquired by South Korea’s Naver Corp., the companies announced Monday (Oct. 3), in an all cash $1.2 Billion deal at $17.90 per share, marking a 15% premium to its last closing price, but less than half its $42 IPO price from January 2021.

“The combination will create the strongest platform for powering communities and re-fashioning commerce,” Naver CEO Choi Soo-Yeon said in a statement, in which he called Poshmark a natural fit for our business.  “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,” he added, pointing to individual sellers and influencers to professional sellers, brands and specialty boutiques.

According to the statement, the boards of both companies have approved the transaction, and it will likely close in the first quarter of next year.

Naver is the biggest internet company in South Korea, and the deal will help its initiative to build a global eCommerce community portfolio.

The decision will see Redwood City, California-based Poshmark becoming a stand-alone U.S. subsidiary of that company. Poshmark is interested in Naver’s record in Asia along with its experience investing in consumer-to-consumer platforms. Poshmark will keep being led by its executive team, including founder and CEO Manish Chandra.

“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,” Chandra said.

Prior to the announcement, shares of Poshmark had fallen more than 80% in the past 22 months, but had rebounded 50% in the past month despite weakness in broader markets.