Liberty Interactive, the parent company of QVC, has recently bought the online deal site Zulilly for $2.3 billion. Announced on Monday, the purchase involves a mix of cash and stock and is valued at about $2.32 billion.
This acquisition will merge the two companies, creating a combined entity with revenue exceeding $10 billion. Together, they have shipped 230 million products to a customer base of 19 million people in 85 countries.
This partnership enables QVC to attract a younger audience, a market it couldn’t previously engage. On the other hand, Zulily hopes that this move will boost its sales growth, which has been slowing down recently. Even though Zulily made over $1 billion in sales last year, its stock prices have been on the decline since February 2014.