Video e-commerce retailer Liberty Interactive to acquire remaining 62% of HSNi
Liberty Interactive Corporation has signed an agreement to acquire the remaining 62% stake in HSNi in an all-stock transaction.
Liberty Interactive president and CEO Greg Maffei said: "The addition of HSN will enhance QVC's position as the leading global video e-commerce retailer. Every year, they together produce over 55,000 hours of shoppable video content and have strong positions on multiple linear channels and OTT platforms.
“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."
QVC president and CEO Mike George said: "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.
"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."
HSNi's chairman of the board of directors Arthur C Martinez said: "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.
"We have both been innovators in a growing and dynamic retail environment with a unique vision of what shopping should be, and as new technologies continue to change our everyday lives, together we can develop the next generation of shopping for the next generation of consumers."
According to Liberty Interactive, the acquisition of HSNi will enable it to increase scale, enhance the competitive position, and lead to synergies through cost reduction and revenue growth opportunities. The deal will also lead to increased development of e-commerce, mobile and OTT platforms, which will enable it to optimise programming across five US networks, as well as better engage existing and potential customers through cross-marketing.
HSNi comprises interactive multichannel retailer HSN, and Cornerstone, which consists of home and apparel lifestyle brands such as Ballard Designs, Frontgate, Garnet Hill, Grandin Road and Improvements.
After the closure of the deal, HSNi headquarters will remain in St. Petersburg and be overseen by Mike George.
Liberty Interactive currently owns 38.2% of HSNi. After the completion of the deal, HSNi will become a wholly owned subsidiary.