Executive Summary

• QVC parent Liberty Interactive Corp. announced the signing of a definitive agreement to acquire the Home Shopping Network (HSN). The deal will see Liberty Interactive, which already owns 38% of HSN, acquire the remaining 62% stake in an all-stock transaction worth $2.1 billion.
• The transaction is expected to close in the fourth quarter of 2017, subject to the approval of both the regulators and HSN shareholders.
• The acquisition should be seen as a move to mount resistance against Amazon. Whether the combined company can gain a foothold under the threat of Amazon hinges greatly on its ability to create a quality shopping experience. Online video and content generation will also be a key area that the combined company will likely focus on.