Singapore’s Qoo10 to acquire e-commerce platform Wish for US$173 million

Singapore-headquartered e-commerce company Qoo10 has entered an agreement to acquire American e-commerce platform Wish from ContextLogic Inc for US$173 million.

The price represents a bargain at about 1 per cent of its value at the time the struggling marketplace listed on the stock market a little over three years ago.

The sale will include all operating assets and liabilities associated with Wish. The platform will become a part of the Qoo10 family of businesses after the transaction closes.

ContextLogic said it plans to use the proceeds from the transaction to help monetise its $2.7 billion net operating loss carryforwards and certain retained assets.

According to Retail Dive, the company had to lay off more than 250 employees – including 41 per cent of its US workforce and 26 per cent of its international staff – last year.

Tanzeen Syed, chairman of ContextLogic, said the board had conducted a “thorough review of strategic alternatives” with the assistance of external financial and legal advisors.

“The board believes the transaction will effectively reduce the cash burn in ContextLogic to near zero, monetise its operating assets at the highest value possible and preserve significant value for shareholders,” Syed added.

ContextLogic CEO Joe Yan said the integration of Wish into Qoo10 will create a global cross-border e-commerce platform to support market demand.

Wish merchants are expected to benefit from an integrated platform that will unlock new opportunities, while users will benefit from a greater selection of goods at competitive prices.

“By combining our operating expertise and Wish’s technology and data science capabilities, we expect to drive greater success for merchants while providing an even greater marketplace for consumers globally,” added Qoo10 CEO and founder Young Bae Ku.

The transaction is expected to be completed in the second quarter of this year, subject to the approval of ContextLogic’s shareholders. It is not subject to any financing contingency. 

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