Two rival home shopping networks are becoming one as QVC parent company Liberty Interactive announced on Thursday that it will acquire longtime competitor Home Shopping Network in an all-stock transaction valued at $2.1 billion.
Liberty Interactive, which is controlled by billionaire media mogul John Malone, has agreed to purchase the remaining 62% of the company that it does not currently own.
“The combined company will be well-positioned to help shape the next generation of retailing,” said QVC chief executive officer Mike George in a statement.
Founded in the 1980s and built on selling merchandise via television, the two companies are now contending with the shift to online shopping. The companies assert that the merger will place them in a better position to invest in e-commerce, maximize the effectiveness of the television programming, attract new customers and satisfy existing ones.
HSN has become a major player in e-commerce in recent years, with digital sales now accounting for approximately half of the company’s $3.6 billion in revenue.
HSN’s previous CEO Mindy Grossman attracted new viewers by broadcasting live concerts and employing celebrity sellers such as Serena Williams and P.Diddy.
HSN will continue to be headquartered in St. Petersburg, Florida, but its operations will be overseen by the CEO of QVC. Currently at the helm of HSN are three executives who assumed their roles following the departure of Grossman.
According to Forbes, the acquisition is expected to close by the last quarter of 2017 and is subject to regulatory and other closing conditions.
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