Business News: QVC Acquires Zulily for $2.4 Billion
Shopaholics who appreciate a good bargain or even insomniacs who find themselves in front of the television late at night are familiar with QVC, the American network that specializes in televised home shopping. Fancy a gold bracelet, or perhaps a fanny pack, or an Olaf figurine from Disney’s Frozen? Turn to QVC – your one stop shop known for their Quality, Value and Convenience…QVC, get it?
On Monday of this week, QVC’s parent company Liberty Interactive Group Corp., announced its $2.4bn acquisition of e-commerce retailer Zulily. After going public less than two years ago, Zulily’s shares increased 49% on Monday to $18.74 however; Liberty is purchasing the company at a discount due to its IPO price. The transaction is expected to close next quarter with projected annual revenues for both platforms to collectively total more than $10bn.
CEO of QVC, Mike George, admitted to having his sights set on Zulily for quite some time. As it relates to Zulily’s performance in the areas of discovery and customer relationships, George commented: “We have very similar kinds of brands and they have attributes that we aspire to.” Zulily caters to 25-35-year-old millennial mothers, while QVC targets 35-60-year-olds.
George further commented that QVC can learn from Zulily, particularly highlighting how the e-tailer approaches personalization. “They introduce literally thousands of new items every days,” George said. “There is a constant stream of freshness for their customer. The challenge is how to take the massive amount of product and introduce it in a way that is relevant.”
Darrel Cavens, CEO of Zulily, is excited to incorporate the scale and international footprint of QVC into his company.by