QVC Buys HSN In $2.1 Billion Deal
If you’re into TV shopping, there’s been quite a shake up today. QVC’s parent company, Liberty Interactive, announced Thursday that it will purchase rival shopping network HSN in an all-stock deal valued at $2.1 billion.
Liberty Interactive already owned a 38 percent stake of HSN; the deal—set to close in late 2017—”will help Liberty develop its e-commerce and mobile shopping platforms and improve its programming content across its networks,” according to reporting from Reuters.
“This was a time where we felt like we could acquire the company on terms that would be attractive to the shareholders of QVC,” said QVC CEO Mike George on CNBC.
“Both companies, QVC and Home Shopping Network, have seen their sales decline as the retail landscape shifts as more consumers buy more products online,” NPR’s Yuki Noguchi reports.
When asked if online shopping was killing their TV sales, George said, “When you put all that together, it should be additive to the growth profile relative to what those companies can do on their own.” And in fact, the deal would make the networks’ combined online shopping presence the third largest e-commerce site, after Amazon and Walmart.
While QVC is the larger company, HSN rules in terms of viewers. In 2006, then-new HSN CEO Mindy Grossman was tasked with overhauling the stalling network, and over the next decade, HSN overtook QVC in viewership in the American tele-retailing market. “The overall tone of the company became fresher, more with it, more exciting. HSN went from a late-night guilty pleasure to a place you might actually buy something from,” reads a fascinating Racked piece from 2015.
Combined, the companies will operate five networks in the US, and will control home furnishing brands such as Ballard Designs, as well as and QVC’s flash sale site Zulily, according to NPR.