QVC, HSN join forces in their failing war against Amazon
Two longtime rivals, QVC and the Home Shopping Network , HSNI -3.10% have agreed to merge as two businesses built around selling over television seek to combat the rise of online shopping.The companies said Thursday that they have agreed to combine in an all-stock transaction valued at about $2.1 billion. QVC, which is controlled by John Malone’s Liberty Interactive Corp. , already owns a 38% stake in HSN.HSN shareholders will receive 1.65 shares of QVC’s Series A stock for each share of HSN. Based on Wednesday’s closing prices, the companies said the offer values each share of HSN at $40.36, or a 29% premium.
Full Article on WSJ.com (subscription required): QVC to Acquire Rival HSN for More Than $2 Billion – WSJ
As the saying goes, “the enemy of my enemy is my friend.”
That pretty sums up what we have here in the tie up for QVC and HSN, as the two once dominant home shopping networks try to survive the onslaught from Amazon.
The “Signal” we see here, of course, is another confirming data point of Connected Society investment theme. But it’s also yet another chapter in the evolution of retail — an evolution that began in the 80’s when these networks launched and immediately started to cut into the Sears catalog business, using cheap cable airwaves and hungry entrepreneurs looking to sell their merchandise. It’s sad to see these two networks struggle, since they essentially should be providing what Amazon does today.
It’s sad to see these two networks struggle, given the fact that they were the “Amazon of the day” back before the internet. But this is the story of thematic investing — the trend of consumers moving away from brick & mortar retail has been emerging for some time now. It’s the process of watching for and analyzing the thematic tailwinds and headwinds that allows us to see who wins and who loses, and why our track record in Tematica Investing has been so strong.
