QVC Owner Taking Full Control of Rival HSN in $2.1B Deal
John Malone's Liberty Interactive will consolidate the two home shopping powerhouses, with CEO Greg Maffei saying the deal will "enhance QVC's position as the leading global video e-commerce retailer."
John Malone's Liberty Interactive, which already owns home shopping powerhouse QVC, has agreed to acquire the 62 percent of HSN Inc. that it doesn't own yet.
The all-stock transaction puts an equity value of $2.1 billion on the rival home shopping firm, formerly known as Home Shopping Network, and an enterprise value of $2.6 billion, it said.
"The addition of HSN will enhance QVC's position as the leading global video e-commerce retailer. Every year they together produce over 55,000 hours of shoppable video content and have strong positions on multiple linear channels and OTT platforms," said Greg Maffei, Liberty Interactive president and CEO. "The value of the combined QVC, HSN and zulily will be further highlighted when later this year QVC Group becomes an asset-backed stock as part of the previously announced split-off of Liberty Ventures."
"HSN founded the industry 40 years ago and helped it grow with exciting initiatives like Shop By Remote and media integrations with leading content producers," said Mike George, QVC president and CEO. "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. 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."
Liberty Interactive said the acquisition would have various benefits, including increased scale,"meaningful synergies through cost reduction and revenue growth opportunities," optimized programming across five U.S. networks and "cross marketing to better engage existing and potential customers."
The deal is expected to be completed in the fourth quarter.