===ContextLogic (WISH) to be acquired by Qoo10 for $173M

 

• ContextLogic, which does business as Wish, has agreed to sell the online marketplace for about $173 million in cash to Singapore-based Qoo10, which operates localized marketplaces in Asia.
• The agreement was forged after “a thorough review of strategic alternatives with the assistance of outside financial and legal advisors,” according to a statement from ContextLogic Board Chairman Tanzeen Syed.
• The deal still needs ContextLogic shareholder approval, but is not subject to any financing contingency and is expected to close during the second quarter, according to a ContextLogic press release. ContextLogic itself will remain a public company.

ContextLogic revealed in November that it was exploring strategic alternatives, amid ongoing revenue declines and losses. Wish has been up against major rivals, including Temu, its much faster-growing key competitor, and Shein, which has “a similar focus on value-oriented consumers,” according to a November research note from UBS analysts led by Kunal Madhukar.

Last year, the company resorted to layoffs of more than 250 employees, affecting 41% of its U.S. workforce and 26% of its international workforce. That followed an attempt the year before to rebrand, a few months after former Foot Locker executive Vijay Talwar’s arrival as CEO. Talwar left after just seven months in the job, and Joe Yan, an operating partner at venture capital firm GGV Capital, took over.