Liberty Interactive Corporation and HSN, Inc. (HSNi) have entered into an agreement that sees Liberty Interactive acquiring the 62% of HSNi it does not already own in an all-stock transaction at a total enterprise value of $2.6 billion. HSNi consists of multichannel retailer HSN and Cornerstone, which is comprised of home and apparel brands.
Liberty owns shopping network QVC.
HSNi headquarters will remain in St. Petersburg and will be overseen by Mike George, QVC president and CEO.
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"The addition of HSN will enhance QVC's position as the leading global video eCommerce 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," said Greg Maffei, Liberty Interactive president and CEO. "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."
Liberty Interactive executives said the acquisition of HSNi will increase the scale of the QVC Group and boost cross-marketing “to better engage existing and potential customers.” It also noted HSNi’s lower debt leverage.
The acquisition, which awaits regulatory approval, is expected to be completed by the fourth quarter. Approval of the Liberty Interactive stockholders is not required.
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“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,” said Arthur C. Martinez, HSNi’s chairman of the board of directors. “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.”
Cornerstone’s brands include Ballard Designs, Frontgate, Garnet Hill, Grandin Road and Improvements.
Upon closing, the Liberty Interactive board of directors will be expanded to include a director from the HSNi board, selected by Liberty Interactive.