QVC To Buy HSN In $2.6 Billion Merger

You may have to kiss goodbye to a lot of your favorite hosts and vendors at the two top home shopping networks, because QVC’s parent company is buying HSN.

At first blush, it appears that Liberty Media Interactive Corp. will keep both QVC and HSN operating as two separate channels, but John Malone’s company anticipates cost savings, and that that usually translates to people losing jobs. Believe us, we know firsthand. But we have not listened to the conference call on the deal yet to be sure.

The huge news was announced Thursday morning, coincidentally just a day after HSN bigwig Mindy Grossman started her new gig at Oprah Winfrey’s Weight Watchers.

http://ir.libertyinteractive.com/releasedetail.cfm?ReleaseID=1032273

http://www.philly.com/philly/business/qvc-home-shopping-network-merge-20170706.html

The acquisition gives Liberty a portfolio of five domestic home shopping channel, namely QVC, QVC2, BeautyiQ, HSN and HSN2.

The all-stock deal is valued at $2.6 billion, with Liberty acquiring the 62 percent of HSN Inc. it doesn’t own. Liberty will offer compensation of $2.1 billion in shares, but the press release says there will be $2.6 billion of “total enterprise value,” whatever that means.

“We are excited to announce the acquisition of HSNi,” Liberty CEO Greg Maffei said in a canned statement.

“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 [over the top] 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.”

Here’s what smiling QVC honcho Mike George had to say in the press release.

“We’re thrilled to welcome the HSNi team to our company,” he said.

“HSNi founded the industry 40 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 eCommerce retailer, the combined company will be well-positioned to help shape the next generation of retailing.”

Here’s what Liberty says the benefits of the deal are: increase scale, enhancing the competitive position of QVC Group; meaningful synergies through cost reduction and revenue growth opportunities; increased development of eCommerce, mobile and OTT platforms; optimize programming across five U.S. networks; cross marketing to better engage existing and potential customers; financial optionality due to HSNi’s lower debt leverage.

HSNi consists of HSN and Cornerstone, which includes Ballard Designs, Frontgate, Garnet Hill, Grandin Road and Improvements.

Post-closing of the deal, expected in the fourth quarter, HSNi headquarters will remain in St. Petersburg and will be overseen by George.

“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 Martinez, HSN’s board chairman.

“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.”

Maffei and George discussed the transaction in a conference call this morning, which will be archived on Liberty’s website. To access the webcast go to http://www.libertyinteractive.com/events.

We can’t listen now, but will later and report back.

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18 Responses to “QVC To Buy HSN In $2.6 Billion Merger”

  1. Joe Says:

    Bless the HSN employees, they are toast. The blood suckers from Liberty and fraud Mike George will strip these guys down to the walls. George will drive this company further down so I guess we officially call this the end of home shopping industry. His lack of vision has cost thousands of jobs when he had all the opportunities and assets to see the future of retail. He will walk away with his multi millions and sail blissfully into the sunset in a few years. Meanwhile thousands of employees will be left to struggle to meet day to day needs. Bravo Liberty and Bravo George…I have a feeling there is a special place for snakes like you in the future.

  2. june lands Says:

    this really sucks. QVC is the worst shopping channel on TV and their website is alway broken…. My viewership will be over.

  3. Betty Brawn Says:

    This stinks. QVC is so expensive. I liked having the lower priced HSN as an option. HSN had lots of discounts, coupons, % off promotions. I guess that will end. At least Evine I can go to coupon sites and get % off coupons and use them on .com even on TTV.

  4. Joe Says:

    This is a tired retail trend desperately trying to hold led by a management team without vision. They trashed their employees now America is going to trash them

  5. Donna Woolley Says:

    omgoodness …………………. me and tiny tim ………. say ………………. God bless us everyone…………….

  6. Trina Dade Says:

    This news is very disappointing to me. I believe that competition is good and that it fuels creativity and options. I wanted more shopping channels, not less. QVC, QVC2 and BeautyIQ are just the same channel with more airings of the same products. Ditto for HSN and HSN2. Even with “five” channels the variety is very, very limited. Now are HSN and HSN2 just going to be more repeat showings of QVC products? I thought it was against the law to create a monopoly. And Zulily was my favorite shopping website. So far it is pretty much the same since the QVC absorption, but will the road ahead net even more mediocrity?

    Thanks, Linda, for keeping us informed! This was a bombshell revelation.

  7. Josh Davd Says:

    lol..yep….I see retirement papers being filed with HR in St. Petersburg now.
    Can you imagine the egos involved with the hosts?

    Bobby Ray Carter who has been there since 83, being introduced or better yet “mentored” by Kerstin ?
    Kathy Wolf being matched with Jill? Who can be the best name dropper?
    Colleen Lopez having to play second fiddle to ego the elf Jane?

    What about Shannon, who claims to have either started at HSN either in 96 one minute then suddenly its 86 being put with Shawn. The 2 women who own everything in the world.

    Then you put Brett, Bill Green, and David together. Um, hope the insurance is paid cause it’s going to be flaming.

    Lastly, poor Suzanne Runyan, she gets booted from the q and now has to be brought back to the hell.

    Seniority don’t mean squat when you get new owners…..Ya know..Just Sayin….Totes cray cray…

  8. Lovie Says:

    This is sad news, but it does not surprise me. Grossman was likely going to be the first to go, hence her exit.

    I didn’t know that QVC already owned 38% of HSN in the first place. (Just found that out today.)

    If there’s ever been a time to stop throwing away money with these home shopping networks it’s now. Learn how to fall in love with thrift shopping! Goodwill and local resale shops are where the REAL deals are, not in malls or shopping channels. I’ve been thrifting since 2005; buying from shopping networks only on rare occasions. I mainly use them for entertainment or background noise while I’m doing chores.

    One of my favorite thrift store uses a huge portion of it’s proceeds to pay people’s electric bills when they fall on hard times… and they have good stuff too.

    This buy-out is not going to benefit the customers, although they will spend millions trying to spin it that way. Less competition NEVER benefits the consumer.

  9. Lovie Says:

    …. and the hosts on both sides need to be updating their resumes and calling in their favors. Perhaps the older ones need to prepare for retirement. I’m sure they can afford it by now.

  10. Linda Perhacs Says:

    I have always preferred QVC to HSN….products and hosts. Personally, I’m glad to see a co-mingling.

  11. Joe Says:

    Forget the hosts, for the most part with a few exceptions they are egotistical phonies. They think they are stars now they will find out they will have trouble getting jobs at Nordstroms. The folks I care about are the ones in their fifties and above. Mike George will discard them like yesterdays’ news. He is an awful person. It really doesn’t matter however,despite what they say, home shopping is going the way of the dinosaurs. It is an old concept. Younger shoppers don’t get it don’t have the attention span for it and will not shop there. Their audience is maturing and dying. This just extends the life a few more years. Yes George and his sub humans from Liberty will make a few more millions like they need it and the poor folks they fire will suffer will never recover. George will drop a few more coins in at church and tell his wife what a wonderful man he is but we know where he will wind up, at least I pray there is some fair plan in the after life.

  12. Jerri Says:

    Oh damn……you beat me to it!!
    I just posted this on your previous post, not knowing of this one.
    As I said on that one, the aftermath should be interesting. 😉

  13. Dan Reynolds Says:

    HQCVN???!!! Making a big mess of 2 smaller ones.

    • Lorraine Says:

      You forgot the S, Dan. HQCVSN. Shopping network from hell.
      As Lovie said, it’s time to stop supporting these ripoff channels and find other places to shop. HSN used to be great….. reasonable prices, great clearances, innovative products, and great shipping prices. Now they sell uber expensive junk, their shipping has gone way up, and they have become celebrity/movie obsessed. Sorry, I don’t want a Trolls handbag. Ugh.
      All that being said, I think they’re better at pricing and have better inventory than QVC. QVC has always been over inflated. But, the QVC hosts are generally much better and much less fake and plastic than HSN hosts. Always have been. Nothing will bring back the good days at HSN; I haven’t shopped in several years. I put them on for entertainment and background noise….that is becoming less frequent. Bye bye, home shopping.

  14. Queen Celeste Says:

    Oh, this does not bode well. Haven’t shopped regularly at QVC in over 20 years. I still keep a Wish List there and recently noticed a bracelet I’ve been watching for almost 4 years is STILL at the same high price. HSN has much better jewelry and fashions. And the hosts–will QVC keep someone as low-key and lovely as Shivan? And yes, all of the behind the scenes employees, will many soon lose their jobs? Well, I sure hope Evine stays around, as for me they’re the best game in town.

    Thanks for any and all updates on this as they happen, Miss Moss!

    • Pam Says:

      I agree with all you say, Celeste…. BUT…..Shivan is not as lovely as you think.
      About 10 years ago, give or take, she was on selling fashions. She gave the measurements for each size. When she got to the plus sizes, she snickered and guffawed, and sneered. It wasn’t something funny off camera that she was hearing or seeing, she only did it when she gave the plus size measurements. I saw her do it on at least 3 or 4 occasions; and some friends and relatives who watch HSN saw it too. There are also comments scattered on other blogs as well as elsewhere on this one that back me up.
      I used to like her calm sales pitch and more laid back manner. After that, I couldn’t stand her.
      Oh, and by the way, I am not plus sized. I believe that people of all sizes, colors and beliefs should be treated with equal grace and dignity. What a terrible way to treat customers! She was acting like a bratty 7 year old and should have been fired.

  15. Mammaberti Says:

    T.V. shopping pretty much done. I’m a mature lady and even I have figured out the best bargains are on Amazon, Zappos etc!

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