The Los Angeles Lakers have signed a multi-year $100 million marketing deal with South Korean food company Bibigo, ending its three-year-old partnership with the e-commerce company ContextLogic Inc (NASDAQ: WISH).
What Happened: As part of the deal, Bibigo, which sells Korean-inspired dumplings, sauces, frozen meals and other snacks, will become the team’s official jersey patch partner, replacing the San Francisco, California-based Wish, which counts Los Angeles as a key market.
The Lakers had in 2017 signed a three-year jersey patch deal with the San Francisco-based e-commerce company Wish.
As part of the deal, Bibigo brand will be prominently displayed on the jersey towards the player’s left chest. The partnership will run for five years, as per a Los Angeles Times report.
Previously, NBA jersey patch deals have sold for an average range of $7 million to $10 million per year, according to the Athletic.
Why It Matters: The Los Angeles Lakers, which count LeBron James, Magic Johnson and the late Kobe Bryant as the names associated with the team, have a huge fan following.
On social media, the team has about 60 million followers spread across social media platforms of Twitter Inc. (NYSE: TWTR), Facebook Inc. (NASDAQ: FB), Instagram, Alphabet Inc.’s (NASDAQ: GOOGL) (NASDAQ: GOOG) YouTube, Snap Inc.’s (NYSE: SNAP) Snapchat alongside prominent Chinese social media platforms, LA Times noted.
The e-commerce platform Wish has found popularity with retail investors and traders this year, in particular on Reddit forum r/WallStreetBets. The stock is down 68.45% on a year-to-date basis.
Price Action: WISH shares closed 7.19% lower at $6.07 on Monday. The stock has a 52-week high of $32.85 and a 52-week low of $5.91.
Photo: Courtesy of Wish
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