QVC And Zulily Merge

Posted: Aug 17 2015, 9:46am CDT | by , in News | Latest Business News

 

This story may contain affiliate links.

QVC and Zulily Merge
Photo Credit: Zulily

Don't Miss: This How to find Fingerlings in Stock

Internet retailer that is the favorite of moms and fashionistas, Zulily, was just purchased by TV shopping network QVC for $2.4 billion. According to the Wall Street Journal, QVC’s parent, Liberty Interactive Corp., on Monday said it would pay the equivalent of $18.75 per Zulily share, representing a roughly 49% premium to Zulily’s closing price of $12.57 last Friday.

That price has fallen quite a bit since Zulily went public in 2013 - about $22 a share. Still, there are still many people using the website to purchase limited time deals on clothing, toys, beauty products, and other merchandise. However, growth has been slowing thanks to a no-returns policy and very slow delivery times.

QVC has been an at-home staple for many people, and together companies will be worth more than $10 billion.

In the past, Zulily’s chief executive, Darrell Cavens has likened Zulily to the web’s version of QVC.

In an interview Monday, executives from the two companies said they had been talking for a few months before they agreed. There are no major changes happening at the top of the companies, both claim. Mr. Cavens said. “I am staying on and look to be here for a very long time,” he added.

Mike George, QVC’s president and CEO, said the goal of the combination is to accelerate sales growth. He also hopes to expand on the age range of people for both products.

With the two companies under one roof, “we can expose brands to more customers,” and there will be the chance to encourage people who use one company to use the other as well.

Mr. Cavens said that Zulily will stick to its unusual business model - there will be little inventory, which means that shipping will still be slow. Hopefully QVC can come up with a method to change that sooner rather than later.

QVC, founded in 1986 and based in West Chester, Pa., generated $8.8 billion in revenue last year, up 2% from a year ago. Its adjusted operating income, a measure of profits, rose 5.5% to $1.9 billion.

Holiday Gift Guides and Deals

Get your Holiday gifting inspired by Best Toy Gifts with High STEM Value and the Top 10 toy gifts under $10 if you are on budget. The most popular Holiday 2017 toy list include Fingerlings, Crate Creatures and more. Don't miss the new Holiday deals on Amazon Devices, including $29.99 Fire tablet.

This story may contain affiliate links.

This free App Solves You Holiday Shopping Problem


Download the free Tracker app now to get in-stock alerts on Fingerling, Luvabella, SNES Classic and more.

Latest News

Comments

The Author

<a href="/latest_stories/all/all/46" rel="author">Noel Diem</a>
Noel passion is to write about geek culture.

 

 

Advertisement

comments powered by Disqus