Wish acquired by Qoo10 in $173 million deal

San Francisco-based ContextLogic has announced the sale of Wish to Qoo10, a leading Ecommerce platform headquartered in Singapore. The deal, valued at $173 million, is a 99% markdown from Wish's market cap in 2021. 

Transaction Snapshot

  • Deal value: $173 million
  • Deal type: Acquisition

Joe Yan, CEO at ContextLogic, emphasised the synergistic potential of integrating Wish into Qoo10's operations. The merger is expected to allow for a global cross-border Ecommerce platform, and expand product and merchant selection. The acquisition also aims to provide Wish's merchants with better logistical capabilities.

Qoo10's acquisition of Wish is also a pivotal moment for ContextLogic, offering a lifeline to its recent financial struggles. In the face of mounting losses and a cash flow deficit reaching $86 million by the end of Q3, ContextLogic had been actively exploring strategic alternatives to turn around their business.

Competing in the online discount retail space, Qoo10 will confront aggressive expansion efforts from rivals such as Temu and Shein. Young Bae Ku, CEO and founder of Qoo10, anticipates this merger will drive merchant success and offer consumers a superior online marketplace.

The transaction is set to conclude in the second quarter of 2024, pending approval from ContextLogic's shareholders and satisfaction of other closing conditions.

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