Deals
Richemont’s $3.3 Billion Bid for Yoox Net-a-Porter Burns Online Luxury Skeptics
- Swiss company bids to buy out e-commerce operator YNAP
- A third of YNAP’s free float had been shorted by bears
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Richemont’s decision to plow 2.7 billion ($3.3 billion) into e-commerce by buying out Yoox Net-a-Porter SpA is a wake-up call to skeptics who thought consumers would never buy $5,000 Cartier necklaces and $50,000 Vacheron Constantin watches online.
YNAP had been targeted by short-sellers who thought Amazon.com Inc.’s appeal to buyers of books or appliances would be hard to replicate with high-end luxury. The Swiss company’s bid overwhelmed those bearish bets as the stock surged to a record.