Maffei added: "Every year they together produce over 55,000 hours of shoppable video content and have strong positions on multiple linear channels and OTT platforms".
The two home shopping network giants are betting that it's better to battle Amazon and other online retailers together rather than alone.
Speaking Thursday on "Squawk on the Street", George said despite thoughts the merger would happen in recent years, now was the right time because of the relative valuations of the two companies. HSNi had been enjoying a turnaround under CEO Mindy Grossman, who left in April to lead Weight Watchers but had positioned the company to take full advantage of the omnichannel expectations of today's retail consumer. Its parent company, Liberty Interactive is based in Colorado.
HSN shareholders will end up with 10.6% of QVC Group's equity and 6.9% of the votes.
Following the close of this transaction, as well as the close of an earlier deal to acquire General Communication, QVC Group will become an asset-backed stock, comprised of QVC, zulily, and HSN, and Liberty Interactive will be renamed QVC Group. Additionally, the new QVC Group with HSNi will be able to utilize a portfolio of five networks across the USA, which means they can cross promote programming and products.
As of HSNi's July 5 closing price, there will be "a consideration of $40.36 per HSNi share, representing a premium of $9.06 a share or 29 percent to HSNi shareholders".
Together, the home-shopping networks will draw a yearly revenue of an estimated $14 billion, including about $7 billion from e-commerce, making it the third-largest online retailer in the USA after Wal-Mart Stores Inc.
In addition to HSN and QVC, the combined QVC Group business would include the flash sale website Zulily, which Liberty Interactive bought in 2015 for $2.4 billion.