Korea’s largest internet company, Naver Corp., has successfully finalized its acquisition of Poshmark, Inc., marking a significant strategic investment in the U.S. e-commerce market. Poshmark, a popular platform for reselling apparel, has undergone changes as a result of the acquisition, including the halt of its common stock trading and delisting from the Nasdaq.

Naver Corp. had announced its plan to acquire Poshmark for $1.6 billion in early October, with the agreement involving the purchase of all the outstanding shares of Poshmark for $17.90 per share in cash. Through this acquisition, Naver aims to tap into Poshmark’s impressive technological capabilities, financial resources, and strong presence in Asia, which will contribute to the expansion and enhancement of Naver’s own platform and user experience.

Both Poshmark and Naver are enthusiastic about the acquisition and the potential it holds for the future. Poshmark will continue to operate under its existing brand, with its employee base and headquarters in Redwood City, California, remaining intact. Manish Chandra, the Founder and CEO of Poshmark, expressed pride in the accomplishments of his team and believes that being part of a larger global organization that shares their values and vision will greatly benefit Poshmark employees.

Sooyeon Choi, CEO of Naver, is confident that their advanced technology in search, AI recommendation, and e-commerce tools will elevate the user experience for the Poshmark community and create additional value for all stakeholders. The acquisition positions both companies as formidable global competitors, providing opportunities to capitalize on the potential revenue generated from consumer-to-consumer (C2C) transactions.

This acquisition is not Naver’s first major investment in North America. In 2021, the company acquired Wattpad, an online literature platform, for approximately $600 million. These acquisitions demonstrate Naver’s commitment to expanding its influence beyond South Korea and strengthening its presence in the global market.

With the acquisition now finalized, Poshmark and Naver are well-positioned to thrive in the ever-evolving global e-commerce landscape. By leveraging their respective strengths and resources, they can deliver an enhanced user experience and drive growth in the industry. As they embark on this exciting new chapter, the partnership between Poshmark and Naver is bound to spark innovative developments and advancements that will shape the future of e-commerce.

Useful links:
1. Naver Corp.
2. Poshmark