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Overstock shares rally as private-equity deal outweigh quarterly loss

Market Watch

Shares of Overstock.com Inc. OSTK, +4.47% rallied more than 20% in the extended session Thursday after news about a private-equity investment overshadowed a larger-than-expected quarterly loss for the online retailer. Hong Kong private-equity firm GSR Capital has agreed to invest in the company and its blockchain unit, tZero, Overstock said. GSR Capital plans to invest up to $374.55 million in exchange for tZero shares and Overstock.com shares, according to a statement. Overstock and GSR Capital also agreed that GSR Capital will buy $30 million in tZero security tokens from Overstock. GSR Capital also will purchase up to 3.1 million shares of Overstock shares at a 5% discount to the $35.50 close