What: Richemont sells a majority stake in YNAP leaving the company without a majority stakeholder.

Why it is important: The deal aims to merge the Yoox Net-a-porter platform with Farfetch to create a neutral luxury platform to protect “the uniqueness of the luxury industry” and appeal to both clients and brands.

While Farfetch acquired 47.5% of the stake sold, Symphony Global’s Mohamed Alabbar acquired a 3.2% stake preventing the immediate merge of the digital luxury platforms. The agreement also sees Richemont and YNAP adopting Farfetch Platform Solutions, which means the companies will sell their merchandise using Farfetch’s digital expertise.

Richemont has been reported to be planning a neutral industry-wide platform by combining the complementary businesses. The YNAP business has been a drag on the Richemont bottom line which has further encouraged releasing their majority stake.

Farfetch is optimistic about the partnership to transform YNAP into a hybrid business model that drives growth and profitability by creating an “iconic portfolio of iconic luxury destinations, appealing to different demographics, price points and regions.”

Richemont sells majority stake in Yoox Net-a-porter