1. What’s the Wallapop Acquisition About?

Naver has acquired 100% of Wallapop, Spain’s largest C2C secondhand marketplace, for approximately ₩903.6 billion. This represents 3.35% of Naver’s capital and aims to secure a foothold in the European market and expand its user base.

2. Why Acquire Wallapop?

Naver anticipates the following benefits from the Wallapop acquisition:

  • European Market Entry: Leverage Wallapop’s strong presence in Spain to accelerate expansion into the European market.
  • Commerce Synergy: Create new revenue streams through synergies between Wallapop’s C2C model and Naver’s existing commerce business.
  • Data and User Base Expansion: Utilize Wallapop’s European user data to enhance AI technology, service development, and user experience.

3. So, What Should Investors Do?

While the Wallapop acquisition represents a strategic move for long-term growth, it also presents uncertainties, including financial burdens from the large investment, PMI risks, and intensified market competition. Investors should consider the following factors:

  • Short-Term Perspective: Be mindful of potential short-term stock price declines due to the large investment and PMI risks.
  • Long-Term Perspective: Successful PMI and synergy creation can significantly contribute to increased corporate value. Continuously monitor Naver’s PMI capabilities and its ability to secure competitiveness in the European market.
  • Macroeconomic Environment: Analyze the impact of macroeconomic factors such as global e-commerce market growth, rising interest rates, and exchange rate fluctuations on Naver’s performance.