QVC Parent Company to Acquire HSN
Liberty Interactive Corporation, QVC's parent company, announced Thursday morning it would acquire the remaining stakes of HSN. The total value of the deal equates to $6.8 billion. MarketWatch reports HSN will become a wholly-owned subsidiary attributed to the QVC Group, making the two major retailers in the television space one company. After the deal closes, HSN headquarters will remain in St. Petersburg, Fla., and QVC chief executive Mike George will remain in his position. The acquisition is rumored to be complete by the fourth quarter of 2017.
Total Retail's Take: Another huge acquisition to shake up the retail industry. QVC and HSN are the two biggest players in the television retail space, and will now be combining to create a near monopoly in the channel. The merger is just one of many in the retail industry this year, as consolidation continues to be a trend to watch. From Wal-Mart's acquisition of Jet.com (completed in 2016) to Amazon acquiring Whole Foods to Coach acquiring Kate Spade, among others, retailers are increasingly looking to grow through acquisition. In an uncertain retail environment, particularly for traditional brick-and-mortar retailers, it's likely that this trend of consolidation will continue for the foreseeable future.