The e-commerce company went public in 2013, selling 11 million shares at $22 per share, but its stock price has since declined.
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Liberty Interactive Corp (QVCA.O), which owns home shopping network QVC, said it would acquire Zulily Inc (ZU.O) in a deal valued at $2.4 billion to tap into the online retailer’s younger clientele and its strong mobile presence. Zulily is one of them, and it just found its means to survive: getting under the wing of Liberty Interactive.
QVC parent company Liberty Interactive is buying all outstanding stock from zulily and attributing the acquisition to QVC Group’s tracking stock.
With the acquisition deal, zulily’s share value surged by nearly 49 percent yesterday (Aug. 17) to $18.74. Following the transaction, Zulily won’t shift its headquarter from Seattle and will continue to run under the supervision of CEO Darrell Cavens.
“Darrell, Mark, and their team have built an impressive business around entertainment, discovery and value to the customer, which fits perfectly with the QVC philosophy”, he said.
Zulily (): Liberty Interactive’s cope with Zulily, which gives members flash gross sales on clothes, toys, and different merchandise, is predicted to be accomplished within the final quarter of the yr. Liberty says the deal shall be mutually useful as QVC will profit from Zulily’s youthful buyer viewers, whereas the web retailer will recieve elevated TV publicity by way of QVC.
Zulily is famous for its flash sales of dresses, particularly for females and children.
Aside from these, the combined company also opened several opportunities, which include leveraging the global scale that QVC has, improving relationships that both companies have with vendors, and applying the expertise of Zulily in video commerce, according to the press release. In connection with the transaction, Mike George is being appointed to the executive committee of the Liberty Interactive board of directors and will serve on that committee with John Malone and Greg Maffei.
Liberty will merge Zulily with its QVC segment, which is approx.
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Cavens will report directly to George and the committee.
