$WISH has been sold for to Asian Ecommerce Platform Qoo10 for $173 million


The parent company of the discount online retailer Wish has agreed to sell its assets and liabilities for $173 million to the Singaporean e-commerce company Qoo10.

AD_SHOULD_BE_HERE

ContextLogic Inc. will sell assets, including Wish, to Qoo10 for $6.50 per share in cash, as confirmed by a statement on Monday, which followed a Bloomberg News report.

Following the sale, ContextLogic will continue to exist as an entity holding the proceeds from the deal and $2.7 billion of net operating loss carryforwards, a tax-related asset that can reduce taxable income in the future.

To monetize its tax assets, ContextLogic may seek a financial sponsor, as mentioned in Monday's statement. One strategy could involve combining ContextLogic with a tax-inefficient business, although the board is considering various options.

AD_SHOULD_BE_HERE

Shares in ContextLogic surged as much as 44% in premarket trading in New York on Monday. The stock closed at $4.50 on Friday, giving the company a market value of about $108 million. However, its market value was $14 billion when it went public in 2020.

ContextLogic, operating as Wish, has faced financial challenges amid strong competition from e-commerce platforms like Shein.

The potential transaction follows a strategic review that ContextLogic announced in November, spurred by pressure from activist investor Cannell Capital, which had criticized its consistent losses and market value decline.

AD_SHOULD_BE_HERE

JPMorgan Chase & Co. is advising ContextLogic, while Jefferies Financial Group Inc. is working with Qoo10.

Unusual Whales does not confirm the information's truthfulness or accuracy of the associated references, data, and cannot verify any of the information. Any content on this site or related pages are not intended to provide legal, tax, investment or insurance advice. Unusual Whales Inc. is not registered as a securities broker-dealer or an investment adviser with the U.S. Securities and Exchange Commission, the Financial Industry Regulatory Authority (“FINRA”) or any state securities regulatory authority. Nothing on Unusual Whales should be construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any security by Unusual Whales or any third party. Options, investing, trading is risky, and losses are more expected than profits. Please do own research before investing. Please only subscribe after reading our full terms and understanding options and the market, and the inherent risks of trading. It is highly recommended not to trade on this, or any, information from Unusual Whales. Markets are risky, and you will likely lose some or all of your capital. Please check our terms for full details.
Any content on this site or related pages are not intended to provide legal, tax, investment or insurance advice. Unusual Whales Inc. is not registered as a securities broker-dealer or an investment adviser with the U.S. Securities and Exchange Commission, the Financial Industry Regulatory Authority (“FINRA”) or any state securities regulatory authority. Nothing on Unusual Whales should be construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any security by Unusual Whales or any third party. Certain investment planning tools available on Unusual Whales may provide general investment education based on your input. You are solely responsible for determining whether any investment, investment strategy, security or related transaction is appropriate for you based on your personal investment objectives, financial circumstances and risk tolerance. You should consult your legal or tax professional regarding your specific situation. See terms for more information.