Liberty Media to buy QVC
Liberty Media has agreed a deal worth $7.9 billion to buy Comcast's majority stake in QVC, the home-shopping network.
Liberty, headed by CEO John Malone, already owns 42% of the internet shopping service. It has agreed to pay for the remaining stock with cash or a three-year senior unsecured note, or by issuing Liberty stock up to a maximum of 7.5% of the shares outstanding.
Brian L. Roberts, president and CEO of Comcast Corporation, said: "This has been a very difficult decision for Comcast. QVC is an exceptional and unique business, but we took a very disciplined financial approach to our evaluation. The cable business continues to be our core focus. With the opportunity to sell at an attractive valuation in excess of $14 billion, we have the flexibility to improve our already strong financial position and to invest for future growth. I believe this is a terrific outcome for both parties."
The deal may have repercussions for the sale of Vivendi's entertainment assets. Up to five bidders - including Liberty Media - are hoping to acquire Vivendi Universal Entertainment for anything up to $15 billion.