Liberty Interactive, the owner of home shopping company QVC, announced this morning that it’s acquiring HSN in an all-stock deal valued at $2.1 billion.
Liberty already owned 38 percent of HSN — now it’s buying the remaining 62 percent. Back in 2015, when Liberty acquired ecommerce company Zulily, there was speculation that the deal could position the companies for a full HSN acquisition.
The big question is how relevant TV-centric shopping will remain relevant as commerce continues to move online. While QVC’s revenue has stagnated in recent years, it still saw $8.7 billion in sales last year, compared to HSN’s $3.5 billion.
Among other things, Liberty says the acquisition will lead to more development of its ecommerce, mobile and streaming video products.
“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 QVC President and CEO Mike George in the acquisition release. “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.”