NEW YORK (AP) — QVC’s parent company will buy the rest of Home Shopping Network for about $2.6 billion in a stock deal, combining two of the most well-known home-shopping hubs.
The buyout comes amid aggressive growth by Amazon.com Inc. as consumer shopping habits continue shifting to internet-based retail.
Liberty Interactive Corp., which owns QVC, will issue 53.4 million shares of QVC Series A common stock to HSN shareholders. It said Thursday that’s the equivalent of paying $40.36 per share for HSN Inc. of St. Petersburg, Florida, marking a 29 percent premium to the stock.
Mike George, the President and CEO of QVC Inc. provided us with the following statement regarding the deal:
We’re thrilled to welcome the HSNi team to our company. HSNi founded the industry forty 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. “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, based in Englewood, Colorado, already owns 38 percent of HSN. The deal is expected to close in the fourth quarter.
Shares of HSN surged $10.30, or 33 percent, to $41.60 in morning trading.
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