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Poshmark to be acquired by Naver for $1.2 billion

Yahoo Finance Live's Rachelle Akuffo looks at Poshmark's stock amid headlines of its acquisition by Naver.

Video transcript

[MUSIC PLAYING]

RACHELLE AKUFFO: Time for Triple Play, the three stocks that we're watching in the final 30 minutes of trading. We've got Poshmark, Hasbro, and Rivian on deck. So Mike, I'm going to kick us off with Poshmark, my pick.

Now that's still enjoying gains after South Korean internet giant Naver announced the acquisition of the e-tailer for $1.2 billion at $17.19 per share in an all cash deal. Now Naver is South Korea's top search engine. And both companies really see synergy in aligning their business while making shareholders happy. Now South Korea being a huge proponent of livestream shopping. And then of course, you have Gen-Z and Millennial shoppers a big hit with Poshmark's consumer to consumer platform.

In a statement they said that beyond live streaming, image recognition and artificial intelligence would also follow. Now the deal spurred a rally in a number of similar fashion recommerce stocks this afternoon. We saw that happened with RealReal, thredUP, Stitch Fix, FARFETCH, and Rent the Runway. Some skepticism though about the timing and the size of this deal, especially given the inflation landscape and slower economic growth. And we did see that that's been weighing on Naver's stock this afternoon, but not affecting Poshmark. That's still off to the races there, up about 31% over the last six months, Seana.

SEANA SMITH: Yeah, Rachelle, I think the price paid is what's really at the crux of this, whether or not investors are going to be happy. Many of them not because the price that they paid, yes, it was a 15% premium to where Poshmark closed yesterday, but it was well below the stock's high, not too long ago. So some question whether or not they could have gotten a better price. Wedbush though, saying that they don't think they could have.

They said, quote, in a note out to-- in a note out to clients this morning saying, quote "they doubt shareholders will be able to push for a higher price." We know Poshmark has been struggling with this business, the decelerating sales numbers that we've been getting, reporting wider than expected losses in two of the last three quarters. So some excitement there for Poshmark, but I think some questions whether or not they are leaving some money on the table.