Liberty Interactive, parent company of QVC, announced a deal to acquire the 62% of HSNi it does not already own.
The all-stock transaction, which assigns a total enterprise value for HSNi of $2.6 billion, is expected to be approved by the fourth quarter of 2017.
“We are excited to announce the acquisition of HSNi. The addition of HSN will enhance QVC’s position as the leading global video eCommerce 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, in a statement. “The value of the combined QVC, HSNi 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.”
Liberty Interactive is expecting the deal to boost competitive scale for QVC and reduce costs. The company also plans to ramp up development around mobile and OTT platforms, and use cross marketing to increase engagement with existing and potential customers. Following the close of the transaction, HSN will keep its headquarters in St. Petersburg, Florida and George will take over the company.
“We’re thrilled to welcome the HSNi team to our company. HSNi founded the industry 40 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,” said Mike George, QVC president and CEO, in a statement. “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 will be getting HSN as well as Cornerstone, which houses brands including Ballard Designs, Frontgate, Garnet Hill, Grandin Road and Improvements.
The proposed deal for HSNi arrives in a year in which Liberty has already announced plans to buy cable operator General Communications for $1.12 billion. Liberty Interactive plans to rename itself as QVC Corp. following the completion of that deal.