Liberty Interactive, owner of QVC, is acquiring the 62 percent of Home Shopping Network that it doesn’t already own in a $2.1 billion all-stock transaction, the companies said Thursday.
The deal will allow the two home-shopping conglomerates to merge operations and thus gain efficiencies. Both companies face increased competition with the likes of Amazon coming on strong, and traditional retailers, such as Wal-Mart, creating robust online operations.
Once the two companies are combined, Liberty Interactive, which is chaired by finance wiz John C. Malone, plans to spin-off its non-retail assets — including stakes in cable operator Charter as well as Liberty Broadband — and rename the new entity QVC Group. The new publicly traded company will be composed of QVC, HSN and its Cornerstone unit, and Zulily, which Liberty bought for $2.4 billion two years ago.
“By creating the leader in discovery-based shopping, we will enhance the customer experience, accelerate innovation, leverage our resources and talents to further strengthen our brands, and redeploy savings for innovation and growth,” said Mike George, QVC President and CEO, in a prepared statement. George is expected to remain at the helm of QVC Group once the deal closes toward the end of this year.
“As the prominent global video commerce retailer and North America’s third largest mobile and eCommerce retailer, the combined company will be well-positioned to help shape the next generation of retailing.”
READ MORE: The New York Times, Variety
[Image courtesy of The New York Times/Mark Makela]
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