Hey Folks! What a day it’s been, and what an announcement!
Poshmark, the popular fashion resale site, will be acquired by Naver Corporation.
Naver has stated that the reasons for the acquisition are to gain a foothold in the U.S. market and to expand its e-commerce business globally. This deal is set to fire off at approximately 1.2 Billion Dollars
This deal we feel is being done more or less for shareholders that have taken heavy losses after the Poshmark stock plummeted.
Manish Chandra (CEO Poshmark) will remain in place, along with the rest of the Poshmark staff, they aren’t going anywhere!
What Will Happen To Poshmark?
Who is Naver? Never Heard Of Em!
Naver is a South Korean online platform operated by Naver Corporation.
It debuted in 1999 as the first web portal in South Korea to develop and use its own search engine.
It was also the world’s first operator to introduce the comprehensive search feature, which compiles search results from various categories and presents them in a single page.
Naver is a South Korean internet company best known for operating the website Naver.com.
In Asian markets:
South Korea: 4th most visited website
Naver has also developed artificial intelligence technology such as Clova (virtual assistant), Wave (translation app), Power Voice (speech recognition app).
How Will Naver Help Poshmark? And More Importantly, Resellers?
For starters, Poshmark will now have access to a much larger pool of potential customers.
Naver has over 30 million monthly active users, which gives Poshmark a significant opportunity to grow its user base.
Additionally, Naver is a publicly traded company, so this acquisition will give Poshmark a boost in terms of credibility and visibility.
Another benefit of the acquisition is that Poshmark will now be able to tap into Naver’s vast resources.
Naver is one of the most well-funded tech companies in the world, so Poshmark will have access to a lot more capital going forward.
This will allow Poshmark to invest in new features and scale its business more quickly.
Buyers on Poshmark will have a better overall experience with new search technology, making what they want, easier to find!
What will happen to my stocks?
Overall, the proposed acquisition of Poshmark by Naver appears to be a good deal for shareholders.
Poshmark themselves stand to make a significant profit, and shareholders will also recieve $17.50 per share along with the acquisition! (A small jump from $16 on Oct 1st)
So, if your a shareholder, stay tuned POSHMARK WILL NO LONGER BE A PUBLICLY TRADED COMPANY.
I'm a Reseller, What Should I Do Now?
Keep doing what you are doing, nothing will change immediately.
More importantly… DO NOT PANIC!
Here at Posh Sidekick, we feel Poshmark will stay the same with their core values in place.
It’s always smart to diversify your platforms, keep crosslisting, keep using good SEO (search engine optimization) for your titles and descriptions (which you should be doing on all platforms, always).
The point of this deal is make user experience better, whether you are a buyer, or a seller!
Overall, we personally feel optimistic about this acquisition and cannot wait to see the benefits this can bring to the reseller community!
Since the Poshmark team will remain in place with founder Manish Chandra at the helm, we know Poshmark’s core values will remain intact.
The track-record of Asian based companies has usually been to keep their acquisitions the way they found them, we do not believe they want to change what attracted Poshmark to them in the first place!
As always, Posh Sidekick will be there for the reseller community, no matter how much its platforms change, or evolve, we will be there to support our clients, and give them access to the most exclusive and cutting-edge tools to benefit your reselling business.
Our tools will adapt to the latest iterations of any platform, we for sure DO NOT plan on going anywhere!
Comment below if you’d like to join in the conversation on this topic!