Detroit-based StockX, the world’s largest online resale marketplace, is negotiating a merger with South Korea’s Kream, a fast-growing resale platform backed by tech giant Naver Corp., according to sources in the investment banking industry.
The proposed deal would see StockX take over management of the Korean platform while Naver would become StockX’s second-largest shareholder. Valuation disagreements could extend negotiations, sources say.
The merger would create an unrivaled global resale powerhouse, addressing StockX’s growth slowdown and heavy reliance on sneaker sales. Despite launching in 2016 – five years before Kream – StockX has watched the Korean upstart overtake it in gross merchandise value while maintaining stronger profit growth.
StockX still generates four times more revenue than Kream due to higher commission fees but faces mounting competition that threatens this revenue stream. The US company abandoned IPO plans in 2021 despite reaching a $3.8 billion valuation.
For Kream, which became a Korean unicorn just one year after its 2021 launch, the deal would provide access to StockX’s global logistics network. The platform has already expanded through acquisitions in Japan and Thailand.
The merged entity would be positioned to capitalize on the global secondhand market, projected to reach $350 billion by 2028. However, the deal faces hurdles, including securing approval from Kream’s diverse shareholders – Naver’s subsidiary Snow Corp. holds 38.82%, Silicon Valley’s Altos Ventures owns 31%, and several financial investors control remaining stakes.
