The offer could be a great deal for MyDeal and a competitive move for Woolworths.
๐ Background: MyDeal is an online marketplace with over 1 million products - everything from teepees to slippers and hair appliances. The company listed on the ASX in October 2020, AKA the middle of a lockdown shopping boom ๐ฅ.
๐ What happened: Ever since listing, MyDeal has been on something of a downward spiral. In fact, shares were down 65% from the IPO date.
๐ What else: Now, MyDeal shares have spiked, because Woolies has lobbed a $243 million offer to buy an 80% stake. Woolies launched its own marketplace last September, but having MyDeal onside will help Woolies compete with Wesfarmers' Catch.
๐กThis marks another chapter in the long running rivalry between Wesfarmers and Woolworths over who can create the biggest retail ecosystem.
๐กIt all started when Wesfarmers acquired Coles in 2007 to rival Woolworths Group's supermarkets. Wesfarmers has Kmart and Target competing against Woolworths' Big W.
๐กNow they're competing in the e-commerce marketplace space. Wesfarmers acquired Catch Group in 2019, and now Woolies putting in an offer on MyDeal looks like an opportunity to go head-to-head with Wesfarmers once again.
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