, Columnist
For QVC and HSN, the Timing Is Right
Competitive pressures and stock moves made a deal more feasible.
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Today's special: HSN for just $2.1 billion, in one easy payment! That's almost 20 percent off last year's retail price! (Fine print: It's not in great condition.)
As HSN Inc.'s shares fell over the past year and its CEO left for Weight Watchers International Inc., it seemed only a matter of time before John Malone's Liberty Interactive Corp. -- owner of the QVC shopping network -- would opportunistically swoop in. Liberty already owns about 38 percent of HSN, QVC's primary competitor, and on Thursday it finally locked down the rest. The parties announced an all-stock merger valuing HSN at $2.1 billion, which works out to a 27 percent premium over HSN's 20-day average closing price. That's a standard figure for deals this size.