QVC Receives Sweetened Takeover Bid from Comcast Corp. and Tele-Communications Inc.

Strategic Insights -

QVC, a leading home shopping channel, is poised to receive a revised takeover bid from Comcast Corp. and Tele-Communications Inc. (TCI) worth $46 a share. The cable companies are looking to increase their offer to acquire the remaining 65% of QVC that they do not already own. QVC's board met on Thursday, but recessed without announcing a decision on the new bid. The sweetened offer comes as a result of Comcast's original announcement of a bid for QVC in July, which scuttled the channel's plans to merge with CBS Inc.

Key Takeaways:

  • QVC's board met on Thursday to discuss a revised takeover bid from Comcast Corp. and Tele-Communications Inc. (TCI) worth $46 a share.
  • The cable companies are looking to increase their offer to acquire the remaining 65% of QVC that they do not already own.
  • QVC's Chairman Barry Diller is believed to have been in talks with several possible suitors, including BellSouth Corp., but has been unable to secure a deal that rivals the Comcast-TCI offer.
  • Comcast Corp. announced its intention to acquire QVC on July 12, offering $44 a share for the home shopping channel, worth $2.2 billion.
  • If the revised deal goes through, Comcast will own 57% of QVC, while TCI will own 43%.
  • BellSouth Corp. has an option to invest $500 million in QVC by August 12, but is unlikely to follow through unless QVC's stock price rises significantly.
  • QVC's stock price rose 75 cents to $44.75 a share in Nasdaq trading on Thursday, amid rumors of the sweetened takeover bid.
  • Analysts say the odds are long for another bidder to emerge, given Comcast's significant stake in QVC and their control over the channel's cable distribution.

Statistics:

  • QVC's stock price rose 75 cents to $44.75 a share in Nasdaq trading on Thursday.
  • Comcast Corp.'s original bid for QVC was worth $44 a share, or $2.2 billion.
  • If the revised deal goes through, Comcast will own 57% of QVC, while TCI will own 43%.
  • BellSouth Corp. has an option to invest $500 million in QVC by August 12.

Sources:

  • "Wall Street Journal"
  • "Comcast Corp. announces intention to acquire QVC, July 12" (no specific date given in the original text)