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Yoox and Net-A-Porter are merging to create a new company called the Yoox Net-A-Porter Group, the New York Times reports. The all-shares deal comes right after the two companies confirmed talks of acquisition yesterday. According to Reuters, Net-A-Porter owner Richemont will receive 50 percent of the combined Yoox Net-A-Porter Group, but Yoox is effectively in charge, since Richemont's voting rights will be capped at 25 percent. Together, the two companies raked in about $1.4 billion in 2014.
Yoox's founder and chief executive Federico Marchetti will be the chief executive of the combined company, and Net-A-Porter's founder Natalie Massenet will be executive chairwoman. Reuters reports that Massenet will oversee editorial content and advertising. According to the Times, both websites will remain separate, and Net-a-Porter’s headquarters will remain in London.
In a release, Massenet states: "Today, we open the doors to the world’s biggest luxury fashion store. It is a store that never closes, a store without geographical borders, a store that connects with, inspires, serves and offers millions of style-conscious global consumers access to the finest designer labels in fashion."