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

Strategic Insights -

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