HSN shareholders will receive 1.65 shares of QVC’s stock for each share of HSN. Being that HSN’s stock closed Wednesday at $40.36, the deal price is equivalent to a 29 percent premium.
Liberty Interactive President and CEO Greg Maffei said in a statement that the two home shopping networks combined each year to produce over 55,000 hours of shoppable video content. He said the value of QVC, HSNi and zulily, the Seattle-based e-commerce company Liberty bought in August 2015 for $2.6 billion, will be enhanced further later this year when QVC Group becomes an asset-backed stock as part of the previously announced split-off of Liberty Ventures.
Mike George, QVC President and CEO, noted that HSN founded the home shopping industry 40 years ago.
“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,” George said in a statement. “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.”
The acquisition of HSNi is expected to be completed by the fourth quarter of 2017. Upon closing, the Liberty Interactive board of directors will be expanded by one to include a director from the HSNi board; this director will be selected by Liberty Interactive.
Colorado-based Liberty owns QVC Group (Nasdaq: QVCA, QVCB), which has its studios and headquarters in West Chester, Pa. HSN (Nasdaq: HSNI) is based in St. Petersburg, Florida.
Post-closing, HSNi headquarters will remain in St. Petersburg and will be overseen by George