French luxury conglomerate Richemont is exiting Yoox Net-a-Porter, shedding the loss-making online luxury business and selling a 50.7 percent stake in the online retailer to Farfetch and an investment vehicle owned by Qatari businessman Mohamed Alabbar, losing $2.68 billion in the process.
WHO: Yoox Net-a-Porter (YNAP) is an Italian online fashion retailer created in October 2015 after the merger between Yoox Group and Net-a-Porter Group. Yoox was originally founded by Federico Marchetti in Milan in 2000, and Natalie Massenet founded Net-a-Porter in London in 2000.
WHY: The deal paves the way for Farfetch to dominate luxury e-commerce, powering the YNAP and Richemont brands with its digital platform and broadening its customer base.
IN THEIR OWN WORDS: In a statement, Farfetch CEO José Neves said, "This investment and work we will do with Farfetch Platform Solutions for YNAP will pave the way to a potential acquisition by Farfetch, which would create a complementary portfolio of iconic luxury destinations, appealing to different demographics, price points and regions."
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