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Wish Acquired by Qoo10 in $173 Million Deal.

Source: Wish

San Francisco, CA - ContextLogic Inc (NASDAQ: WISH) has agreed to be acquired by Asia-based Qoo10 in a cash transaction valued at $173 million. 

Key Highlights

  • Transaction: Wish's operating assets were sold to Qoo10, an Asian e-commerce platform, for approximately $6.50 per share, representing a 44% premium.
  • Monetization focus: ContextLogic seeks to monetize ~$2.7 billion in net operating losses (NOLs) as it becomes a public company with no debt and limited operating expenses.
  • Future Plans: The Board will seek financial partners to maximize the value of the NOLs. If unsuccessful, the Company intends to return capital to shareholders.
  • Impact on Customers and Dealers: Customers can expect more excellent product selection and competitive pricing in the combined marketplace. Merchants will benefit from integrated logistics capabilities and new cross-border opportunities.

What They Say:

Joe Yan, CEO of ContextLogic, commented:

"Integrating the Wish platform into Qoo10 will create a true global cross-border e-commerce platform...we expect the new one to have an enhanced customer experience."

Young Bae Ku, Founder and CEO of Qoo10, believes that;

the combined platform will "drive greater success for merchants while providing an even greater marketplace for consumers worldwide."

What Comes Next: NOL Preservation Plan

To protect its substantial NOLs, ContextLogic has adopted a tax benefit retention plan (the "Plan"). 

The Plan provides for issuing one preferred share purchase right for each outstanding Class A common stock share on or before February 22, 2024. 

The Plan facilitates ContextLogic's future use of NOLs and will be subject to a stockholder vote at the 2024 Annual Meeting of Stockholders.