QVC Parent Company Liberty Interactive Agrees to Buy HSN, Inc.
After years of speculation and rumors that it could happen, it finally is happening. Liberty Interactive Corporation, the parent company of QVC Group, announced on Thursday morning that it entered into an agreement with HSN, Inc., to purchase the 62 percent of HSNi that it does not already own. The move—an all-stock deal estimated at around $2.6 billion (or 130 million easy payments of just $19.99)—will bring together two longtime rivals in the ecommerce and TV shopping space.
“We’re thrilled to welcome the HSNi team to our company,” Mike George, QVC President and CEO, said in a statement. “HSNi founded the industry forty years ago and helped it grow with exciting initiatives like Shop By Remote and media integrations with leading content producers. 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.”
While the majority of their sales still come from call-ins during live programming, the two companies have transitioned into the online shopping space as their revenues have steadily declined. Still, QVC recorded $8.7 billion in sales last year, while HSN added another $3.5 billion.