ContextLogic Announces Agreement To Sell Substantially All Operating Assets And Liabilities Associated With Wish To Qoo10 For $173M In Cash Or ~$6.50/Share
Portfolio Pulse from Benzinga Newsdesk
ContextLogic Inc. (WISH) has agreed to sell its operating assets, including the Wish ecommerce platform, to Qoo10 for $173 million in cash, equating to about $6.50 per share, a 44% premium over its last closing price. This sale will leave ContextLogic with significant Net Operating Loss (NOL) carryforwards of approximately $2.7 billion, which it plans to monetize. The company will remain publicly listed and intends to return capital to shareholders if it cannot monetize the NOLs effectively. The transaction is expected to close in Q2 2024, subject to shareholder approval.
February 12, 2024 | 1:03 pm
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POSITIVE IMPACT
ContextLogic Inc. (WISH) is selling its Wish platform to Qoo10 for $173M, aiming to monetize its $2.7B in NOLs. The deal is a 44% premium over its last closing price, indicating a potential positive short-term impact on WISH's stock price.
The sale of the Wish platform to Qoo10 for a significant premium over the last closing price suggests a positive outlook for WISH's stock in the short term. The monetization of the NOLs and the potential return of capital to shareholders if monetization is unsuccessful further support a positive impact. The transaction's approval and successful closure are key factors that could influence the stock's performance.
CONFIDENCE 90
IMPORTANCE 95
RELEVANCE 100