Owner of QVC Taking Over Big Rival HSN for $2.1 Billion
Liberty Interactive is set to consolidate two powerhouses of home shopping with its CEO Greg Maffei calling the deal a way to enhance the position of QVC as the global leader of video e-commerce retail.
Liberty Interactive, controlled by John Malone, already owns QVE a powerhouse in home shopping and has agreed in principle to acquire the remaining 62% of HSN Inc. that it already does not own.
The transaction for all-stock gives HSN a big rival in home shopping a $2.1 billion value. Formerly it was called Home Shopping Network, and HSN will have a $2.6 billion enterprise value.
Liberty’s CEO and president Maffei said that adding HSN would enhance the position of QVC. Each year the two together produce more than 55,000 hours of video content for shopping and both have very strong positions on multiple OTT platforms and linear channels.
The value of HSN, QVC and zulily combined will become further highlighted when in late 2017 QVC Group changes to an asset-backed stock which is part of an announcement made previously of a split off of Liberty Venture, added Maffei.
QVC CEO and President Mike George said that HSN founded this industry more than 40 years ago and has helped it to expand with exciting initiatives such as Shop By Remote along with media integrations involving leading producers of content.
Through creating the discovery based shopping leader, the company will enhance the experience of the customer, accelerate innovations, leverage talents and resources to strengthen further its brands, and to redeploy savings for growth and innovation, George said through a prepared statement.
As the third largest North American mobile and online retailer and the prominent global video retailer, the new combined company will have a strong position in shaping retail’s next generation, the QVC CEO said.
Liberty Interaction announced that the acquisition has several benefits that included increased scale, along with many synergies through revenue growth and cost reduction, optimized programming in five networks located in the U.S. and cross marketing that will better engage the existing as well as the potential customer.
Both companies expect that the deal will be completed during the fourth quarter of this year.
Shopping both through video and online has reshaped retail the past few years as brick and mortar stores continue to be shuttered as the consumer has shifted habits for shopping from visiting malls to remaining at home and shopping online.