Naver acquires US online shopping Poshmark for $ 1.2 billion – Chosun Ilbo (English version): Korea Daily

Naver announced Tuesday that it will acquire US online marketplace Poshmark for $1.2 billion. This is the largest acquisition deal ever for a South Korean internet portal.

Naver is struggling with a sharp decline in its share price and an uncertain earnings outlook due to a slowing global economy. “The customer-to-customer market is the fastest growing segment in the IT industry,” said Sooyoung Choi, CEO of Naver.

Poshmark is a popular eBay alternative. Since opening in 2011, it has over 80 million users and ranks first in the US customer-to-customer market.

With this deal, Naver completes its global ecosystem of social marketplaces including Cream in South Korea, Vintage City in Japan, Wallapop and Bestiere Collective in Europe, and Poshmark in the US.

But some market watchers say Naver paid a hefty sum in its all-cash acquisition of Poshmark. Poshmark turned to losses this year.

Naver’s shares fell 8.79% on Tuesday to close at 176,500 won (US$1 = 1,429 won).

• Copyright © Chosun Ilbo & Chosun.com