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Poshmark takeover: Naver POSH acquisition date, stock price and details in full

By Daniela Ešnerová

09:06, 4 October 2022

Phone screen with Poshmark (POSH) logo.
Naver’s acquisition of Poshmark (POSH) is expected to finalise by Q1 2023. -- Shutterstock

The Nasdaq-listed US fashion e-commerce giant Poshmark (POSH) is set to be acquired by a South Korean online platform Naver for some $1.2bn (£1.05). 

The California-based company has recently become a target of short sellers after its shares got a beating following missed earnings estimates. 

The deal spooked investors in Naver, whose shares fell almost 9% in the wake of the announcement. POSH shares, however, got a strong boost in pre-market trading - up 12.7% at $15.57 two hours before the US market open.

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Poshmark Inc (POSH) share price

Naver's offer; POSH shares

Naver’s offer to buy all the issued and outstanding shares of Poshmark for $17.90 in cash represents a 15% premium in share price compared to the previous day’s market close.

It also represents a 34% premium to the 30-day volume weighted average price, and a 48% premium to the 90-day volume weighted average price of Poshmark’s shares.

However, the shares are down 34% year on year and more than 81% during the last five years.

Global expansion

Poshmark’s founder and chief executive hailed the opportunity to expand into the Asian market, while Naver’s boss said his company's search capabilities will be able to take the American brand to global markets.

“This is a highly compelling opportunity for our employees, who will benefit from being part of a larger, global organisation with shared values and complementary strengths,” Poshmark's Manish Chandra commented in a statement. 

HK50

19,560.80 Price
-0.850% 1D Chg, %
Long position overnight fee -0.0225%
Short position overnight fee 0.0005%
Overnight fee time 21:00 (UTC)
Spread 30.0

US30

39,802.60 Price
-0.500% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0040%
Overnight fee time 21:00 (UTC)
Spread 2.2

US100

18,661.40 Price
+0.620% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0040%
Overnight fee time 21:00 (UTC)
Spread 1.8

DE40

18,742.40 Price
+0.050% 1D Chg, %
Long position overnight fee -0.0221%
Short position overnight fee -0.0001%
Overnight fee time 21:00 (UTC)
Spread 8.0

Nasdaq Index price

“This transaction also delivers significant and immediate value to our shareholders.

“Longer term, as part of Naver, we will benefit from their financial resources, significant technology capabilities, and leading presence across Asia to expand our platform, elevate our product and user experiences, and enter new and large markets,” he added.

Naver's CEO Choi Soo-Yeon said: “Poshmark is the definitive brand for fashion in the United States that provides a social network for buying and selling apparel.

“Naver’s leading technology in search, AI recommendation and e-commerce tools will help power the next phase of Poshmark’s global growth.”

Acquisition date 

The deal, which was unanimously approved by both Naver’s and Poshmark’s boards of directors, is expected to close by the first quarter of 2023, subject to approval by Poshmark stockholders. 

 

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The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
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