Lyst, the high-end fashion marketplace once valued at $700 million, has been acquired by Japan's Zozo for $154 million in cash. The acquisition allows Zozo to expand its international portfolio while Lyst will operate as a standalone business with its CEO, Emma McFerran, remaining at the helm. The deal comes as Lyst faces challenges from U.S. tariff hikes, fierce competition from giants like Amazon, and shifting investor interest towards AI. Despite a significant reduction in value, Lyst aims to leverage Zozo's resources to enhance its operations in the competitive fashion e-commerce landscape.