South Korea's Naver to buy U.S. e-commerce site Poshmark for $1.2 billion

The companies announced Monday that Naver is buying U.S. e-retailer Poshmark for over a billion dollars. Poshmark shares went up as much as 14 percent in extended trading.

The price is $17.90 per share. Monday was the last day of business at Poshmark.

Naver has various services in South Korea. The companies said the deal would allow Poshmark to enter international markets.

People can shop from other people's closets on Poshmark. In January 2021, the company went public at $42 a share, hitting the market at a time when online shopping was surging due to the Covid-19 outbreak.

The stock fell along with the rest of the technology industry.

Naver and Poshmark said they expect the deal to generate significant revenue and cost synergies, including re-acceleration of annual revenue growth beyond 20%, as ads improve monetization, investments grow overseas and live commerce gets greater adoption.

There has been consolidation in the secondhand clothing market. Depop was acquired for $1.62 billion. ThredUp competes with Depop.

A conference call will be held at 9 pm to discuss the deal. The time is on Monday.

Young entrepreneurs make a lot of money by turning old clothes into cash.