Comcast's $2.2 Billion Bid for QVC Inc. Faces Opposition from Largest Stakeholder

Strategic Insights -

Comcast Corporation's bid to acquire QVC Inc. for $2.2 billion has hit a roadblock as Tele-Communications Inc. (TCI), the largest stakeholder, has expressed opposition to the deal. TCI's CEO, John Malone, who is also the most powerful figure in the US cable industry, stated that his company is not happy with the proposal made by Comcast and prefers to remain a partner in QVC. This development has broken up a planned merger between QVC and CBS Inc. that was being spearheaded by QVC chairman Barry Diller and CBS chairman Laurence Tisch.

Key Takeaways:

  • TCI, the largest cable-television company in the US, opposes Comcast's $2.2 billion bid for QVC Inc.
  • TCI's CEO, John Malone, stated that his company prefers to remain a partner in QVC rather than cashing out.
  • Malone expressed willingness to back a Diller bid to buy Comcast's stake in QVC or other ventures.
  • Malone mentioned the possibility of swapping cable-television assets for equity in a merged CBS-QVC.
  • Malone believes that CBS chairman Laurence Tisch can sell his stake in the company quickly, citing interest from other players such as Disney and Turner Broadcasting Systems Inc.
  • Other unidentified takeover players believe that there is little interest in acquiring CBS.

Statistics:

  • $2.2 billion: The value of Comcast's bid for QVC Inc.
  • 25: The issue number of the New Yorker magazine where John Malone's interview was published
  • 2.4 billion: The value of the planned merger between QVC and CBS Inc.
  • 100%: The stake that TCI and Liberty Media Corp. have in QVC Inc.

Sources:

  • The New Yorker magazine (July 25 issue)
  • Ken Auletta, writer of the article, New Yorker magazine (July 25 issue)
  • Reuters News Agency