John C. Malone is solidifying his hold on home-shopping channels — in his own particular way.
His Liberty Interactive, which owns QVC, said on Thursday that it would combine with its longtime rival, the Home Shopping Network (HSN), in a US$2.1 billion deal.
The deal will put together the two home-shopping television networks at a time of upheaval in the retail world. Amazon’s dominance in selling online has grown seemingly nonstop, while Walmart has made e-commerce a big priority with the purchases of start-ups like Jet and the clothing brand, Bonobos.
With e-commerce ascendant, nearly everyone else in the retailing sector, from venerable department stores to once-trendy clothiers like J. Crew, has been struggling to grow or even survive. A growing number of retailers, from American Apparel to Radio Shack, have filed for bankruptcy protection.
Home-shopping television networks are not immune to online competition. With their familiar pitches for impulse purchases of electronics, jewelry, makeup and fitness equipment, both QVC and HSN are grappling with ways forward. HSN’s sales declined 3% last year, while QVC’s have slowed. In April, Mindy Grossman, HSN’s chief executive since 2008, left to run Weight Watchers International.
Full Content: Forbes
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