In an afternoon letter published by Poshmark CEO and founder Manish Chandra, news was delivered to customers worldwide that the clothing reseller was pulling itself from public trading after being sold to the private South Korean internet giant Naver.
The California-based online reseller had mastered marketing in the U.S. and the public markets. Chandra vowed the company mission and brand would be unwavering through the transition, “Once the transaction closes, Poshmark shareholders will realize significant and immediate value—Poshmark will no longer trade on the public markets, and for those of you who own Poshmark stock, you will receive $17.90 in cash per share. We will continue to operate independently, as a standalone subsidiary of Naver. Our current management team, brand, mission, values, and—above all—our focus on our community, will remain the same”.
Poshmark has had moments of blind luck since its inception. The opening IPO soared 140% and last year’s revenue gains were nearly 20% greater than the previous year; with business enduring the worldwide outbreak of Covid-19. This move gives the South Korean tech giant a retail niche in the North American market. On January 14, 2021, Poshmark went public, at a valuation of over $3 billion, listed on the Nasdaq Stock Market under the symbol POSH.
Naver’s acquisition of Poshmark for $1.2 billion is the South Korean company’s largest purchase to date. Noted for being the up-and-coming Google of Asia, Naver has set its sights beyond Asia since 2020 and acquired its first North American business, Wattpad, for $600 million. Mid-sized media organizations and sports franchises are rumored to be on the list of future acquisitions.
(Writing by Said Rushdie; Editing by Robbie Robertson)
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