Liberty Interactive, the owner of the home shopping channel QVC, officially stated they will acquire HSN through an “all-stock deal” valued at $2.1 billion. Liberty Interactive previously held 38% ownership of HSN, but due to the growing competition of Amazon and other online giants, the two parties realized a merge was better.
Since the acquisition of HSN, the question remains for Liberty Interactive and QVC: Can Liberty Interactive compete with the new online shopping world?
QVC has shown great numbers in recent years, specifically $8.7 billion in sales last year in comparison to HSN’s $3.5 billion. However, with modern-day consumers gearing more towards online shopping, these networks seem to face a cloudy future as to how successful it will be. Liberty Interactive is quite proactive with their approach because with the purchase of HSN, the company will be able to improve its “e-commerce, mobile, and streaming video products.”
Mike George had the following to say about the future of QVC after the acquisition:
“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 eCommerce retailer, the combined company will be well-positioned to help shape the next generation of retailing.”
The merger allows for a maximization and increase in profits including greater scalability, combining resources, cutting excess costs, and becoming more versatile. It is definitely an interesting move that will have Amazon and other competitors on their toes.
Mohammad Sultani for TechFunnel.com