Long trade : Liberty Interactive (QVCA) +5% (12/17)

• Dec. 15: #3;  vol. 5.2M

 

• A month later:

HSN (HSNI) to be acquired by Liberty Interactive (QVCA/LVNTA) for $40.36/share

• QVC and Home Shopping Network, two of the most well-known TV home-shopping hubs, are combining further as they look at aggressive growth by Amazon (AMZN) and consumer shopping habits shifting to internet-based retail.
• Liberty Interactive (QVCA)'s QVC division previously acquired  Zulily (ZU) for $2.6 billion in August 2015.

    

 

  

HSN to be acquired by Liberty Interactive (QVCA/LVNTA) for $40.36/share in stock, or approximately $2.6 bln:

Liberty Interactive Corporation (QVCA, QVCB, LVNTA, LVNTB) and HSN announced that they have entered into an agreement whereby Liberty Interactive will acquire the 62% of HSNi it does not already own in an all-stock transaction.

• Liberty Interactive currently owns 38.2% of HSNi and, under the definitive agreement will acquire the remaining 61.8% stake, making it a wholly-owned subsidiary, attributed to the QVC Group tracking stock. HSNi shareholders will receive fixed consideration of 1.65 shares of Series A QVC Group common stock for every share of HSNi common stock. Based on the Series A QVC Group common stock's closing price as of July 5, 2017 and the number of HSNi undiluted shares outstanding as of May 1, 2017, this equates to a total enterprise value for HSNi of $2.6 billion, an equity value of $2.1 billion, and consideration of $40.36 per HSNi share, representing a premium of $9.06 per share or 29% to HSNi shareholders, based on HSNi's closing price on July 5, 2017.
• Liberty Interactive intends to issue 53.4 million shares of QVC Series A common stock to HSNi shareholders. Pro forma, QVC Group total undiluted share count will be 504.3 million, comprised of 474.9 million shares of Series A common stock and 29.4 million shares of Series B common stock, with former HSNi shareholders, excluding Liberty Interactive, to own 10.6% of QVC Group's undiluted equity and 6.9% of the undiluted voting power, based on the number of shares outstanding as of April 30, 2017. Following the completion of the transaction, Liberty Interactive expects to continue its repurchases of QVC Group common stock.
• The acquisition of HSNi is expected to be completed by the fourth quarter of
  2017.

QVCA — is it a buy?

• Aug, 12:  Is QVCA a buy?

• 18 months later:

Liberty Interactive (QVCA) reported earnings Fri 5 Aug 2016 (b/o)

Liberty Interactive Corp., the parent of home shopping network QVC, said profit climbed 13% in the second quarter but warned it is “more cautious” in the near term amid slowing consumer demand in the U.S.

• Revenue helped by recent acquisition of Zulily

Liberty Interactive (QVCA) : Feb - June, 2016

Zulily (ZU) acquired by Liberty Interactive (QVCA)

  

• Zulily (ZU) was acquired by Liberty Interactive (QVCA)'s QVC division for $2.6 billion in August 2015.

• Liberty Interactive -- the media company that owns shopping channel QVC -- announced it will acquire online retailer Zulily in a deal worth $2.4 billion. 
• Zulily (ZU) began trading on the NYSE on 15 November 2013

In a statement released Monday, Liberty says it will acquire all outstanding Zulily shares at $18.75 a piece, and attribute it to QVC Group's tracking stock. Shares of Zulily surged 49% in pre-market trading.

Founded in 2010 by President and CEO Darrell Cavens and board chairman Mark Vadon, Zulily is an e-commerce website specializing in selling discounted clothing and merchandise. The company went public in 2013, but its stock price has declined since hitting a 52-week peak of $39.10 last September.

In May, Chinese e-commerce giant Alibaba says it captured a 9% stake in Zulily.