QVC owner buys Home Shopping Network for $2.1B
Liberty Interactive, the media company that owns shopping channel QVC, is expanding its storefront by purchasing all of its rival, the Home Shopping Network.
The result could eventually mean even better deals for customers of the video and online shopping destinations, which in- cludes five channels shown on TV and online (QVC, QVC2, BeautyiQ, HSN and HSN2.)
The $2.1 billion deal also helps both outlets compete in a retailing environment increasingly dominated by Amazon. A combined QVC-HSN ranks as the No. 6 U.S. online retailer ($7.5 billion e-commerce sales in 2016), dwarfed by Amazon ($123.8 billion), according to research firm Internet Retailer.
“These television retailers tend to each have their own very loyal customer base, and I would guess that the two companies will work harder than ever to keep those customers from moving to Amazon,” said Stefany Zaroban, Internet Retailer’s director of research. “As consumers continue to shift more of their spending to the Web, much of that is going to Amazon. So we think there will be lots more deals like this, as well as store closures and bankruptcies.”
Englewood, Colo.-based Liberty said it will pay $2.1 billion for the 61.8% of HSNi it does not already own in an all-stock transaction. HSNi shareholders will get 1.65 shares of Series A QVC Group common stock for every share of HSNi. This represents a premium of $9.06 per share, based on the closing price Wednesday of $32.30. Thursday, shares of Liberty fell 1.2% to $24.16; HSNI rose 27% to $39.70.
QVC President and CEO Mike George will oversee both networks when the deal closes, expected later this year. QVC and HSN will continue to operate as individual brands, “with their own unique identity, culture and customer following,” George said.