(LEAD) Naver to acquire U.S. online fashion market for 2.3 billion won
(ATTN: REWRITES lead; UPDATES with comments from Naver lead at paragraphs 5 & 6, stock price bottom; TRIMS)
SEOUL, Oct. 4 (Yonhap) — South Korean internet portal giant Naver Corp. announced on Tuesday that it will take over Poshmark Inc., an American social commerce platform specializing in second-hand clothing trading, for 2.3 trillion won ($1.6 billion). to expand its North American business.
According to his filing, Naver agreed to buy a 100% stake, or 1.3 million shares, in Poshmark for a total of 2.3 trillion won.
Founded in 2011, California-based Poshmark is one of the largest online shopping platforms in the United States, where users can buy and sell new and used clothing, as well as other items for the House. It has over 80 million users.
“In our continuous search for an (effective) strategy in global commerce and market, we have decided that the consumer-to-consumer market is an attractive industry worth pursuing,” said Choi Soo-yeon, CEO of Naver, in a conference call after the announcement.
Choi noted that uncertainties over Naver’s synergy effect with Poshmark could raise concerns, but added that the South Korean internet giant sees “great growth potential” in the deal.
Naver said the deal is part of its long-term strategy to build a global portfolio connecting Korea, Japan and Europe to North America, and to increase its competitiveness in the global e-commerce market. .
And it will combine its technology and content and entertainment businesses, like live commerce and webtoons, with Poshmark’s shopping platform, and look for ways to expand new business models.
“Naver has secured an important position for understanding the younger generation in North America,” Naver’s CEO said in a statement. “We will bring new experiences ranging from shopping, webtoon and K-pop content to future customers, and create a new trend in the global consumer-to-consumer market.”
Naver, South Korea’s leading internet portal operator, has increased its investment in online fashion marketplaces in Korea and overseas, including Kream in South Korea, Vintage City in Japan and Vestiaire Collective in Europe.
Investors, however, were apparently unimpressed with the announcement. The technology company’s share price plunged 8.79% on South Korea’s main stock exchange on Tuesday to close at 176,500 won.