Liberty Interactive Corporation has announced that has acquired a stake in Home Shopping Network Inc that it didn’t already own at a price of $2.1 billion. The Douglas County-based Liberty owns QVC, an online and cable shopping service, and the acquisition means it has purchased a competitor in e-commerce. HSN and QVC are estimated to generate approximately $14 billion in combined annual revenues.
“We’re excited HSNi is joining the QVC family. The combination will enhance QVC’s position as the leading global video eCommerce retailer and provide meaningful synergies. We also look forward to the first quarter of 2018 …” president and chief executive officer of Liberty Interactive, Greg Maffei, said.
With the acquisition, the resulting entity becomes the third-biggest online shopping outfit in the United States after Walmart Stores and Amazon. Closing of the deal came after shareholders of Home Shopping Network gave approval last week of the all-stock deal. Home Shopping Network has thus ceased being publicly traded.
Some of the retail brands that Home Shopping Network owns under its Cornerstone unit include Improvements, Grandin Road, Garnet Hill, Frontgate and Ballard Designs. Home Shopping Network will continue to operate from its headquarters in the state of Florida though it will be overseen by the chief executive officer and president of QVC, Mike George.
QVC Japan’s former chairman, Mike Fitzharris, will become the president of Home Shopping Network and will be reporting to George. Fiona Dias, a board member of Home Shopping Network, will also join the board of Liberty Interactive.
Besides QVC, other online retail properties that Liberty Interactive owns includes Zulily, which it owns through its tracking-stock group. Currently Liberty Interactive consists of QVC Group as well as Liberty Ventures Group, a trading-stock group. Liberty Ventures Group includes Evite, an online party-invitation platform besides investments in Charter Communications, ILG, Lending Tree and FTD.
Liberty Interactive has also lined up new acquisitions in 2018. In this year’s first quarter Liberty Interactive intends to purchase General Communication Inc, a telecommunications operator based in Alaska. Additionally Liberty Interactive intends to have Liberty Ventures split off. Liberty Interactive will be left with Zulily, Home Shopping Network and QVC and this will operated under QVC Group with focus on online retail.
A sister firm of Liberty Interactive, Liberty Media Corp, owns stakes in various media properties including Viacom Inc, Time Warner, Live Nation Entertainment Inc and Sirius XM Holdings Inc. It also owns various sports properties in Formula One racing and baseball.