QVC parent company Liberty Interactive (QVCA) finalized a deal to purchase the remaining 62% stake of long-time rival HSN Inc. (HSNI) that it didn't already own for $2.1 billion in an all-stock deal Thursday.
HSN shares were halted from trading just before the announcement was made.
"Every year they together produce over 55,000 hours of shoppable video content and have strong positions on multiple linear channels and OTT platforms," Greg Maffei, Liberty Interactive CEO said in a joint statement. "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."
QVC CEO Mike George told CNBC that now, at a time when traditional retail is being challenged on multiple fronts, was the time to bring the two companies together to maximize the power of their brands.
"Historically, HSNI has traded at a premium over QVC, but that valuation has flipped over the last several months. So we felt like now would be when we could acquire the company on terms that would be attractive to the shareholders of QVC," George said.
QVC Group shares were down 0.35% to $24.38 in late morning trading Thursday.
What's Hot On TheStreet
Apple is OK for the time being: For those silently worrying how the Apple (AAPL) - Get Apple Inc. (AAPL) Report iPhone 8 will sell, simmer down -- the tech giant still has several huge advantages. On the hardware side, for instance, the iPhone still feels ahead of the pack thanks not only to Apple's design skills and the visible features of its hardware, but also what's under the hood points out TheStreet's tech columnist Eric Jhonsa. From the looks of things, the iPhone 8 should extend that lead, Jhonsa predicts.
Tesla is looking wobbly: Tesla (TSLA) - Get Tesla Inc Report shares are looking a little shaky (again) after its Model S didn't get a top rating from Insurance Institute for Highway Safety (IIHS), reports TheStreet's James Skinner. The IIHS cited issues with the small overlap front test, which is meant to simulate crashes into trees, poles and other vehicles, as why the Model S did not receive the highest rating. IIHS Executive Vice President David Zuby said the front test remains a "hurdle" for some vehicles.
"Tesla made changes to the safety belt in vehicles built after January with the intent of reducing the dummy's forward movement," IIHS said. "However, when IIHS tested the modified Model S, the same problem occurred, and the rating didn't change."
Costco finally scores some good news: After watching its stock crash about 13% inside a month thanks to fears Amazon (AMZN) - Get Amazon.com, Inc. Report and Whole Foods (WFM) will dominate society, Costco COST scored a nice win. Costco said same-store sales in June rose 6.5% in June. Canada saw sales up 3.2%, while international sales rose 6.2%.
The numbers should serve as a reminder how resilient Costco's business has been in the face of Amazon's rise.
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