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LINTA - Liberty Interactive


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http://files.shareholder.com/downloads/AMDA-GY7JI/2756792379x7456752x791401/0801ddf8-743a-4c41-a917-ca3e65f8bf30/LINTA_News_2014_11_4_General_Releases.pdf

 

Liberty Interactive Corporation

● Reattributed Digital Commerce companies and approximately $1 billion in cash from QVC Group to Liberty Ventures Group in exchange for 67.67 million newly issued shares of Liberty Ventures Group

❍ Liberty Interactive Group renamed QVC Group and trading under new tickers QVCA and QVCB

❍ Newly issued Liberty Ventures Group shares distributed to QVC Group holders tax-free

❍ Cash and liquid investments attributed to Liberty Ventures Group estimated to be $2.7 billion at year-end

❍ Improved trading liquidity through Liberty Ventures Group share issuance

● Completed the spin-off of Liberty TripAdvisor Holdings, Inc. ("Liberty TripAdvisor") on August 27th

 

Attributed to QVC Group

QVC US grew revenue by 5% and adjusted OIBDA(2) by 8% in the third quarter

QVC.com revenue as a percent of total US revenue increased 222 basis points to 43% QVC US mobile penetration was 41% of QVC.com orders

QVC US operating income increased by 6%

QVC posted strong adjusted OIBDA increases across all European operations QVC completed issuance of $1 billion in new Senior Notes

 

Attributed to Liberty Ventures Group

● Announced additional $650 million share repurchase authorization at Liberty Ventures Group

● Received approximately $350 million distribution in conjunction with spin-off of Liberty TripAdvisor

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QVC: Talk about sticky customers. Customers are following them into Mobile. 40% of internet orders from Mobile and internet orders are going up.

 

QVC's margins should improve if this trend continues.

 

Personally i have never shopped at QVC. I just dont see the appeal. Apparently those customers just love it. But love holding all liberty companies.

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I think QVC is an enormous beneficiary of the growing use of devices while watching TV - an unhealthy habit I find myself doing occasionally. I think this trend has played right into their hands. http://techcrunch.com/2012/12/05/nielsen-85-percent-of-tablet-and-smartphone-owners-use-devices-as-second-screen-monthly-40-percent-do-so-daily/

My 2c is that the company will also benefit from a resurgence of the american consumer, and a decline in the pace of financial repression (deleveraging).

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I think QVC is an enormous beneficiary of the growing use of devices while watching TV - an unhealthy habit I find myself doing occasionally.

Occasionally!? Here I am watching a movie on TV, while typing this on my laptop, and periodically checking my iphone for text messages. I need to get out more  ;D

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Yes, no problem. Sometimes PDFs get corrupted while downloading. Download again or use a different PDF viewer?

;)

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http://ir.libertyinteractive.com/releasedetail.cfm?ReleaseID=898376

 

Attributed to QVC Group

 

Grew QVC US revenue by 5% and adjusted OIBDA(2) by 8% in the fourth quarter

QVC US operating income increased by 8%

QVC.com revenue as a percent of total US revenue increased to 48%, a 254 basis point increase

QVC US mobile penetration was 42% of QVC.com orders, a 1,023 basis point increase

Achieved positive quarterly adjusted OIBDA at QVC Italy for the first time

Grew QVC US revenue by 4% and adjusted OIBDA by 6% in 2014

QVC US operating income increased by 4%

Returned $3.26 billion in value to QVC Group shareholders in 2014 through share repurchases and the Liberty Ventures share dividend

Received a one-time special dividend of $10/share from HSN, Inc. ("HSN"), on February 19, 2015; pre-tax proceeds to QVC Group, net of amounts passed through on Liberty Interactive's HSN Exchangeable notes, were $146 million

Attributed to Liberty Ventures Group

 

Closed the sale of Provide Commerce ("Provide") to FTD Companies, Inc. ("FTD"), on December 31, in exchange for $145 million in cash and 10.2 million shares of FTD, representing an approximate 35% ownership interest, resulting in a gain of $75 million

Finished 2014 with $2.8 billion of attributed cash and liquid investments

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Guest JoelS

Does anyone know the tax consequences of a full spin out of the QVC business? I.e. is there a certain time period that must have passed before the tracking stock structure can be removed, and the QVC business on its own in a tax free spin off ? TIA

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Is this the QVCA board?  Malone companies are so confusing.

 

It's old news but the ZU acquisition is fairly major given QVCA's size.  So far I am not a big fan, the numbers they are paying are high and this is not a simple bolt-on.  They did get it for less than it IPO'd at so there is that but ZU will need to grow quite a bit more to justify what they paid. 

 

 

Then Greg Maffei, the CEO of QVC parent Liberty Interactive Corp. (Nasdaq: QVCA) called Vadon to see if he'd be interested in a more direct relationship with Liberty. It was clear to both men that the two companies could benefit a lot from each other's experience. Liberty then announced it will buy Zulily for $2.4 billion.

 

QVC has a sophisticated distribution and fulfillment system that Zulily could use to make its own system more efficient, for example. Zulily could also benefit from the increased marketing it would get on air.

..

After the acquisition closes, the Zulily brand will remain. Cavens said he expects the company's Seattle office to continue to expand.

 

"As we look forward, this gives us a larger platform to play with," Cavens said. "It allows us to really go chase some big opportunities."

 

http://www.bizjournals.com/seattle/blog/techflash/2015/08/behind-the-qvc-deal-zulily-leadership-built-decade.html?ana=yahoo

 

 

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Yeah, it could turn out okay, I just question whether they are out of their sphere getting into web based businesses.  I am not decidedly against it, just not confident is all.

 

Perhaps the saving grace could be that they are paying half with their own shares which seem undervalued.  They are generating a ton of cash, it looks like they could pay the whole thing off in about 2 years so they are not betting the company on it.

 

It is tough because I was about to to buy into QVC but have had to rethink things after this happened.  If you just forget about ZU it looks quite cheap.  Anyone else selling/adding?

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http://www.businessinsider.com/amazon-working-on-its-own-shopping-channel-2015-10

 

QVCA/HSN down ~5%. Oddly both stocks sold off hard around 10:45a even though this story was out yesterday. Little details out around AMZN service but not sure I understand the negative reaction. If this is just another window to purchase AMZN products then the negative reaction seems unwarranted. Especially considering the <10% overlap that QVC products have with AMZN products. Also not sure how AMZN will be launching this "channel". Maybe I'm too optimistic, but seems like this is just headline risk with people calling it a "QVC Killer", even though there's no details. Anybody have additional thoughts?

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Yeah, it could turn out okay, I just question whether they are out of their sphere getting into web based businesses.  I am not decidedly against it, just not confident is all.

 

Between QVCA and LVNTA, they own a bunch of eCommerce businesses.  The highest quality one being commerceHub.

 

The highest quality one being Expedia :)

 

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