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Liberty Interactive to merge video commerce retailers QVC and HSNi in $2.1bn deal

RBR Staff Writer Published 07 July 2017

Liberty Interactive, the parent company of QVC Group, has agreed to acquire 61.8% of stake it doesn’t own in rival video commerce retailer HSNi in an all-stock transaction valued at $2.1bn.

The acquisition, which is likely to be completed by the fourth quarter of the year, would give 100% ownership to Liberty Interactive in the Florida-based HSNi.

HSNi is made up of the interactive multichannel retailer HSN and Cornerstone, which includes home and apparel lifestyle brands like Ballard Designs, Garnet Hill, Grandin Road, Frontgate and Improvements.

For Liberty, the acquisition of HSNi would grow scale and boost the competitive position of QVC Group while creating meaningful synergies with cost reduction and revenue growth opportunities.

According to Liberty Interactive president and CEO Greg Maffei, HSN’s addition will improve QVC’s position further among the top global video eCommerce retailers.

Maffei added: “Every year they together produce over 55,000 hours of shoppable video content and have strong positions on multiple linear channels and OTT platforms.

“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.”

Post acquisition, HSNi’s headquarters will remain in St. Petersburg.

It will be overseen by QVC president and CEO Mike George who said: “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.”

Under the acquisition terms, the shareholders of HSNi will get 1.65 shares of QVC Group shares in exchange of every share they hold in the former.

The acquisition is subject to customary conditions including regulatory approvals from the Federal Communications Commission and others.

In August 2015, Liberty Interactive had signed a deal to acquire flash sales site Zulily for $2.4bn.

Image: A QVC outlet store located in Frazer, Pennsylvania. Photo: courtesy of TastyPoutine/Wikipedia.org.