ShopExchange: When Will QVC Acquire HSN?

IAC, one of the biggest online TV conglomerates, is on the verge of splitting into five independent companies.  With that move, QVC would finally be able to take over the home shopping network HSN and become one of the world’s largest mail order houses.

Last week the balance sheets of the new IAC entities have been revealed, among which are the latest figures from HSN (see table).  HSN, the second largest home shopping network in the US, and the IAC catalog busines Cornerstone Brands will form the new company HSNi (HSN Inc.).

Interesting to see, that Shoebuy and the shares of Japanese shopping network Jupiter Shop Channel, which both have been part of the IAC retailing division, will remain with IAC.  Also remaining with IAC are Pronto, Gifts.com and other promising e-commerce businesses.

Thus HSNi represents the weaker parts of the portfolio:  Despite several management re-orgs, HSN continues to perform below expectations.  It was also known for some time that IAC overpaid for Cornerstone Brands.  IAC has now reported a goodwill impairment of $300 million.

It is expected that as soon as HSNi is split from IAC, Liberty Media (QVC’s mother company and one of HSN's current share holders) will execute a take over.  With such a move, QVC would become one of the world’s largest mail order companies - and catch up with the likes of Amazon.

Originally posted in German by Jochen Krisch, translated by Jason Soo.