is selling its Home Shopping Network Europe business to German retailer
The deal comprises $196 million in stock and is structured to accommodate a further payment of $74.4 million after three years, on the basis of unspecified conditions related to KarstadtQuelle's stock price.
The deal would allow IAC to "strengthen our focus on our core domestic retail market, and demonstrates IAC's continuing commitment to redeploy its capital into strategic growth areas," IAC President and Chief Operating Officer Doug Lebda said in a press release Wednesday.
IAC's retail business has
struggled as of late and weighed down the conglomerate's stock price. With its exposure to many fast-growth Internet businesses, the logic of IAC continuing to operate television-based retail businesses has often been called into question.
But IAC believes that television and Internet businesses will eventually meld together, and that operating both types of businesses will give it an edge over the long run.
Shares of IAC were off nearly 2% in recent trading to $34.75.