Cross-border e-commerce platform Wish will be sold

Consumer Discretionary Author: EqualOcean News Feb 18, 2024 05:43 PM (GMT+8)

(NASDAQ: WISH), the parent company of US e-commerce platform Wish, announced on February 12 local time that it will sell Wish to Singaporean e-commerce company Q0010 for about $173 million in cash.The deal, which was formally announced on the morning of February 12 local time, is expected to be completed in the second quarter of 2024, the company said. The completion of this transaction will mark an important step in the strategic layout of the two companies in the global e-commerce field, but also the beginning of a new journey for the Wish brand.

Founded in 2010 and headquartered in San Francisco, U.S., ContextLogic operates its e-commerce business primarily through a platform model, relying on merchant commissions and advertising revenues as its primary sources of income.Wish is known for its affordable products and user-friendly shopping experience, similar to China's Pinduoduo platform, and focuses on providing users with cost-effective products.In December 2020, the Wish went public on the NASDAQ, becoming one of the most highly regarded e-commerce stocks in the market.

However, since its IPO, Wish has faced a number of challenges, including fierce market competition, increased operating costs, and changing consumer demand. Together, these factors have led to a steady decline in the company's stock price, and its market capitalization has shrunk dramatically from its peak to the current $164 million. Against this backdrop, Wish chose to sell to Q0010 with the aim of finding new opportunities for growth through new strategic partnerships.

Q0010 is a Singapore-based e-commerce company known for its strong presence in the Asian market and robust business operations. The acquisition will not only expand Q0010's reach into the North American market, but will also provide Wish with a wider range of resources and support to help optimize its operational strategy, expand its product categories, and enhance the user experience.

Upon completion of the transaction, Wish will retain its brand and listing status, meaning that Wish will continue to operate as a standalone brand, but will benefit from Q0010's expertise in supply chain management, technical support and market expansion. The move is expected to help Wish reshape its brand image and improve its competitiveness in the market, while bringing richer product choices and a better shopping experience to its global users.

Analysts believe that this transaction is not only a key step in Wish's quest for transformation and recovery, but also an important move for Q0010 to realize its global expansion strategy. As the e-commerce market continues to evolve and competition intensifies, this partnership is expected to bring new growth momentum for the two companies to jointly explore new development opportunities in the global e-commerce space.