Poshmark jumps on $1.2 bln sale to South Korea's Naver

ThredUp

04/10/2022 11:37

** Shares of online second-hand fashion retailer Poshmark
Inc  POSH.O  up 11.6% at $17.38 in premarket trading — stock set
to open at a near nine-month high
    ** South Korean e-commerce co Naver Corp  035420.KS  to buy
Poshmark in a $1.2 bln deal, foraying into the U.S. e-commerce
market
    ** Naver, which is also South Korea's top search engine,
will pay $17.90 cash for each Poshmark share — a 15% premium to
stock's last close
    ** Deal shows that internet retail valuations have sold off
meaningfully in recent months, but that acquirers still value
cos that have shown profitability, or have a clear path to
profitability, Jefferies analyst Ashley Helgans says
    ** Other U.S. online fashion cos also up in low vol.
premarket trading post deal: Stitch Fix  SFIX.O , The RealReal
 REAL.O , Rent the Runway  RENT.O  and ThredUp  TDUP.O  up
1.3%-3.9%  
    ** Upto Monday's close, POSH had fallen 8.6% so far this
year; stock down 63% from January 2021 IPO price of $42
    ** Seoul-listed shares of Naver closed down 8.8%
 (Reporting by Uday Sampath in Bengaluru)
 ((UdaySampath.Kumar@thomsonreuters.com; Twitter: https://twitter.com/sampath_uday
  ;))