QVC Group’s $2.4 billion takeover of Zulily is moving smoothly. Regulators from the Justice Department and Federal Trade Commision have signed off on the deal earlier than expected, clearing the way for a fourth-quarter close to the deal.
The deal, announced less than a month ago, will have both QVC and Zulily maintain separate brands. Zulily will operate as part of QVC’s parent company, Liberty Interactive.
“As we looked at the overlap, and we have not meshed vendor lists yet, I candidly don’t think there is a lot of overlap there,” said Zulily CEO Darrell Cavens in an analyst call at the time the deal was announced. Just six percent of QVC customers shop at Zulily.
When the deal closes, the biggest change may be Zulily on TV. By leveraging QVC’s dedicated television audience and targeted product lineup, Zulily may be able to overcome a recent slump in stock price.
Zulily stock ended the day mostly even, but spiked in after hours trading before falling slightly. Liberty Interactive gained half a point on the news.