Coupang completed the acquisition of the business and assets of Farfetch Holdings plc on January 30, 2024, for a total purchase consideration of $208 million. The acquisition was primarily aimed at expanding Coupang's presence in the luxury retail market.1
The $208 million purchase consideration was comprised of two main components:
- A $150 million contribution from a previously funded Bridge Loan.1
- A $58 million partial repayment of Farfetch Term Loans.1
Coupang accounted for this transaction as a business combination. The acquisition was facilitated through Surpique LP, a Limited Partnership initially owned 80.1% by Coupang, Inc. and 19.9% by Greenoaks Capital Partners, LLC. Coupang later acquired Greenoaks' equity interest in this partnership in April 2025.1
The purchase consideration was allocated to the acquired assets and assumed liabilities based on their estimated fair values:
Assets Acquired (Estimated Fair Value):1
- Cash and cash equivalents: $126 million
- Accounts receivable, net: $286 million
- Inventories: $305 million
- Prepaids and other current assets: $221 million
- Intangible assets: $325 million (including brand trademarks, customer relationships, supplier relationships, developed technology, and brand licenses)1
- Operating lease right-of-use assets: $209 million
- Other assets: $318 million
Liabilities Assumed (Estimated Fair Value):1
- Accounts payable: $(529) million
- Long-term debt: $(557) million
- Operating lease obligations: $(214) million
- Other liabilities: $(343) million
The net assets assumed totaled $147 million, with a noncontrolling interest of $(78) million. The excess of the purchase consideration over the fair value of net identifiable assets and liabilities was recorded as $139 million in goodwill, which is expected to represent future economic benefits from the acquired workforce and anticipated operational and logistical cost efficiencies.1
