HSN, Inc. (NASDAQ: HSNI) is having an overwhelmingly strong day in the market today after announcing that it would be acquired in a deal valued at more than $2 billion. As we would expect, this led to incredible excitement among investors, causing gains in the value of the stock and prompting our partners at Trade Ideas to alert us to the movement. At the moment (10:39), HSNI is trading at $39.70 per share after a gain of $8.40 per share or 26.84% thus far today.
HSN To Be Acquired
As mentioned above, HSN, Inc will be acquired. The news broke that the parent company of competitor, QVC, has made the decision to purchase HSN, Inc for approximately $2.6 billion. The deal is an all-stock deal that will bring the two strongest home shopping centers together to make a behemoth.
In order to complete the transaction, Liberty Interactive Corp., the owner of QVC, will issue 53.4 million shares of QVC Series A Common stock to current HSNI shareholders. That brings the per share value of the acquisition to $40.36, representing a 29% premium on the purchase.
This deal comes as no surprise, as Liberty Interactive already owns a whopping 38% of HSN. With mounting pressure in retail as consumers continue to shift their shopping habits online, now is viewed as perfect timing for this deal by many.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will be keeping a close eye on HSNI. Considering that the deal is still subject to customary closing conditions and expected to close in the fourth quarter, this could become an interesting story as it unfolds. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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