Comcast, Liberty Media Join Forces to Acquire QVC for $2.2 Billion

Strategic Insights

Jul 21, 1994 — 1 min read

Philadelphia-based cable-television operator Comcast Corp. has taken its takeover bid for home shopping network QVC Inc. to the next level by partnering with Liberty Media Corp., controlled by cable-TV industry leader John Malone. The latest twist in the acquisition saga comes after Comcast's original bid to buy QVC for $2.2 billion was announced, with the company now offering an all-cash deal worth $44 a share. The new partnership brings Liberty's 18.5% stake in QVC, held through its subsidiary, under the Comcast umbrella, with the two companies set to manage the video retailer together.

Key Takeaways:

Comcast's takeover bid for QVC Inc. is now valued at $2.2 billion, with the company offering an all-cash deal worth $44 a share.
Liberty Media Corp., controlled by John Malone, has joined forces with Comcast to acquire QVC, with the two companies set to manage the video retailer together.
Under the new deal, Comcast would hold a 57% stake in QVC, while Liberty Media would control the remaining 43%.
Analyst Dennis McAlpine of Josephthal Lyon & Ross criticized the all-cash offer, stating that it would require QVC shareholders to pay more in taxes.
The acquisition will bring Liberty's programming interests, including Black Entertainment Television, the Family Channel, and Court TV, under Comcast's umbrella.
John Malone, considered the most powerful man in television, will be a key participant in the deal, bringing significant expertise and experience to the table.

Statistics:

Comcast's original bid to buy QVC was valued at $2.2 billion.
The all-cash offer is worth $44 a share.
Liberty Media Corp. holds an 18.5% stake in QVC, controlled through its subsidiary.
Comcast would hold a 57% stake in QVC under the new deal.
Liberty Media would control the remaining 43% of QVC.
QVC's stock fell $1.75 to close at $44.25 after the new bid was announced.

Sources:

Reuters News Agency
Bloomberg NEW YORK Cable-television operator
Comcast Corp. press release
Liberty Media Corp. press release
Josephthal Lyon & Ross report
Nasdaq Stock Market data

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