Poshmark purchased by Naver in £1.05bn shopping spree
Fashion resale platform Poshmark has been snapped up by South Korean e-commerce firm Naver Corp, leaving some investors sceptical about the timing of the takeover.
Naver’s share price took a hit after the announcement of the $1.2bn acquisition, with shares tumbling almost nine per cent overnight on Monday.
The internet search engine giant said it would pay $17.90 cash for each Poshmark share and acquire all of its outstanding stock.
While fashion re-selling has entered its stride, with e-commerce sales gaining momentum among younger shoppers during the Covid 19 lockdowns, analysts raised their eyebrows at the takeover amid an uncertain economic environment.
“Why now? The market is sceptical about whether this is best timing,” Sung Jong-hwa, eBest Investment & Securities analyst told the Reuters news agency.
“Since Covid-19 became endemic, many platform companies have seriously lost their lustre. And the plunging won doesn’t help,” he added.