1️⃣ The Investor Revolt 💥
Farfetch investors, including Fir Tree, are rallying against what they perceive as a destructive move by Coupang. Holding over 50% of Farfetch's convertible senior notes, they're alarmed by the deal's potential to erase these notes' value, pegged at a colossal €1 trillion.
2️⃣ Deal Drama 📉
The Coupang acquisition, announced in December 2023, saw Farfetch shares tumble by 38%, hitting record lows. Investors argue the deal undervalues Farfetch, especially considering alternative interest from three other parties.
3️⃣ Financial Fiasco 🚨
The swift shift from Farfetch's August 2023 guidance, boasting €800M in year-end liquidity, to a distressed December sale raises eyebrows. Notably, JPMorgan's valuation of Farfetch exceeded €3 billion, deepening investor skepticism.
4️⃣ Coupang's Conquest 🌏
Coupang, a dominant force in South Korea's e-commerce, eyes Farfetch as a strategic pivot to global luxury retail. Despite past overseas market challenges, Coupang's "Rocket Deliver" service and expanding luxury inventory paint a promising picture of potential dominance.
5️⃣ The Luxury Landscape 🛍️
Coupang aims to capitalize on the under-tapped South Korean online luxury market. With a mere 12% luxury e-commerce penetration in South Korea compared to 19% globally, Coupang's acquisition could revolutionize luxury shopping in Asia and beyond.
How do you think Farfetch and Coupang drama will end
