Mike Timmermann, Clark.com
Now, the rivals are joining forces to better compete with Amazon and Walmart amid a challenging retail landscape.
Read more: Target discontinuing popular clothing brands
QVC to acquire Home Shopping Network
Liberty Interactive Corporation, which owns QVC and 38% of HSN already, will buy the rest of the latter network in a stock deal worth more than $2 billion.
“We are excited to announce the acquisition of HSNi. The addition of HSN will enhance QVC’s position as the leading global video eCommerce retailer,” Greg Maffei, Liberty Interactive President and CEO. “Every year, they together produce over 55,000 hours of shoppable video content and have strong positions on multiple linear channels and OTT platforms.”
Liberty Interactive believes the acquisition of HSN will increase scale, making the company more competitive. It also hopes to reduce costs and increase revenue growth opportunities.
After the deal is closed, QVC president and CEO Mike George will oversee HSN.
“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,” said George.
According to the Associated Press, George said QVC is stronger in fashion and beauty, while HSN does well with electronics, fitness and health.
Together, QVC and HSN will serve an estimated 23 million customers and ship more than 320 million packages annually.
Although the two brands got their start selling items through their TV channels, both have focused in recent years on online and mobile shopping to attract a younger demographic.
The deal is expected to be completed by the fourth quarter of 2017.