Liberty Interactive Corp said it would buy the remaining 62 per cent of HSN Inc it does not already own in a deal that values the TV shopping network at $2.1-billion.
The deal allows U.S. cable TV mogul John Malone to fully merge HSN with Liberty Interactive’s QVC network.
The all-stock offer is worth $40.36 per HSN share, a premium of 29 per cent to the stock’s Wednesday close. HSN’s shares jumped 33.9 per cent to $41.90 in early trading on Thursday. Liberty Interactive’s shares were up 4.1 per cent at $25.45.
The deal, which gives HSN an enterprise value of $2.6-billion, will help Liberty develop its e-commerce and mobile shopping platforms and improve its programming content across its networks, the company said.
The HSN group consists of HSN, its home shopping business, and Cornerstone, which includes home and apparel lifestyle brands including Ballard Designs, Frontgate and Garnet Hill.
HSN shareholders will receive 1.65 shares of Series A QVC Group stock for every share held, Liberty Interactive said.
HSN will be overseen by QVC Chief Executive Mike George and will remain headquartered in St. Petersburg, Florida.
Allen & Co is the financial adviser to Liberty Interactive, while Baker Botts LLP is the legal adviser.
Centerview Partners and Goldman Sachs Group are the financial advisers for HSN. Davis Polk & Wardwell LLP is the legal adviser.
- Latest Price$39.95+8.65(+27.64%)
- Updated July 6 12:32 PM EDT. Delayed by at least 15 minutes.
Receive News & Ratings Via Email - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings with MarketBeat.com's FREE daily email newsletter.