QVC parent Liberty Interactive, which currently holds 38.2% of HSN, Inc., has entered into an agreement to purchase the remainder of the company in an all-stock transaction. The deal, which is expected to close in the fourth quarter, will make HSNi a wholly-owned subsidiary.
“As the prominent global video commerce retailer and North America’s third largest mobile and e-commerce retailer, the combined company will be well-positioned to help shape the next generation of retailing,” said Mike George, QVC president and CEO, who will oversee HSNi operations going forward.
Greg Maffei, Liberty Interactive president and CEO, said together the two companies create more than 55,000 hours of shoppable content. “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,” he said.
[Read more about the power of shoppable television content: Reading & Reaching Today’s Customer Requires Data and a Media Mindset]
The $3.5 billion HSNi business includes the HSN television, online and mobile retailer along with Cornerstone, which owns leading home and apparel brands like Garnet Hill and Ballard Designs.
Liberty Interactive will issue 53.4 million shares of QVC Series A common stock to HSNi shareholders. The transaction equates to a total enterprise value for HSNi of $2.6 billion, an equity value of $2.1 billion, and a HSNi share value of $40.36, representing a 29 percent premium over the July 5 closing price.
Liberty Interactive is looking to HSNi to provide several benefits to its overall business, including increasing the company’s scale and giving the $8.7 billion QVC Group an enhanced competitive advantage. The company will also enjoy reach across five U.S. networks and increased development of its online shopping, mobile and over-the-top video content. HSNi is also attractive due to its lower debt leverage.
HSNi sees the deal as an opportunity to leverage new technologies and evolve to satisfy the demands of future customer groups. “Joining the QVC Group will give us instant access to global consumer markets, a leadership team with deep expertise and a global perspective, and the opportunity to further strengthen our content-based brand portfolios in a changing retail landscape,” said Arthur C. Martinez, HSNi’s chairman of the board of directors.
QVC currently reaches more than 360 million homes worldwide while HSN reaches 91 million.
LevaData is tapping the power of AI to make strategic sourcing and procurement more seamless for apparel industry members.Read more
Samples, it seems, may soon end up on the endangered list if 3D modeling technology continues to improve and provides the industry with a way to cut down production timelines.Read more
Abercrombie & Fitch continues to rely on Hollister gains, while positioning the Abercrombie brand for similar success. Gap sales up on Athleta, Old Navy performance.Read more
The domestic textile industry and apparel importers have often been on opposite sides of U.S. trade issues, but in today’s political climate they seem to have found some common ground.Read more
U.S. employers added 261,000 jobs in October, pushing unemployment down to the lowest rate since the halcyon days of late 2000.Read more
While everyone’s been focused on the "retail apocalypse," the real story to emerge from 2017 might be the strange bedfellows that have emerged as everyone tries to plot a course forward. The recent partnership between Walmart and Lord & Taylor is the latest to get people talking.Read more
J.W. Anderson’s chief executive, Simon Whitehouse, is exiting the company, plus Dick's Sporting Goods tapped Paul Gaffney as its new CTO.Read more