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The fate of the 11Street (11st) platform is at stake as its proposed IPO becomes uncertain, leading to speculation of a possible sale. The inability to complete the IPO within the timeframe promised to investors has prompted SK Square to consider a divestment as an alternative to raising capital for 11st.
Recent industry reports indicate that SK Square has been in talks with several international firms to sell its stake in 11st. The companies mentioned include Rakuten, Amazon and Alibaba. The level of engagement and negotiations varies between these companies, but all appear to have expressed interest in acquiring 11st.
Rakuten has had a strong focus on synergies by acquiring local e-commerce platforms such as TMON, Interpark Commerce and WeMakePrice. Alibaba’s subsidiary AliExpress previously announced plans to invest 100 billion won ($76 million) in the South Korean market. Amazon is already working with 11st through its Amazon Global Store. The possible acquisition of 11st by one of these companies appears to be a move aimed at exploiting synergies.
SK Square is considering finding the ideal partner who would best appreciate the value of 11st. The predominance of foreign companies interested in acquiring stems from the challenge of finding large domestic companies capable of acquiring 11.
An industry insider commented, “Given the atmosphere in the investment market, going public seems challenging. The strategy appears to be to strengthen 11st by raising capital through sale.” The source added, “It is noteworthy that international companies such as Amazon, Rakuten and Alibaba, which are not struggling with domestic companies, are showing interest in 11st. “
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