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QVC buys mother and child eCommerce website Zulily for $2.4bn

The TV shopping giant QVC has bought eCommerce website Zulily in a deal valuing the publicly listed website at $2.4 billion.

Aimed at mothers, the Zulily eCommerce site sells heavily discounted branded clothes and toys through flash sales.

On completion of the deal, both QVC and Zulily will operate as separate consumer brands and QVC said it will be able to leverage its global scale, curation, vendor relationships and video commerce expertise to boost Zulily.

Meanwhile, QVC – which recently launched its video and eCommerce capabilities in France – will be able to tap into Zulily's younger customer demographic and personalisation technology.

"We are excited for Zulily to join the Liberty family," said Greg Maffei, Liberty interactive president and CEO. "Darrell, Mark [Zulily founders] and their team have built an impressive business around entertainment, discovery and value to the customer, which fits perfectly with the QVC philosophy. Combined under Liberty, we have an incredible opportunity to delight shoppers from the TV to the Internet."

Mike George, QVC president and CEO, added: "As the world leader in video and eCommerce retail, QVC is dedicated to reimagining shopping, entertainment and community as one. In Zulily, we see a like-minded brand that shares our passion for discovering great products, for delivering honest value, and for building long term relationships with customers. Our teams are committed to learning from and inspiring each other and leveraging our platforms in new ways to accelerate growth, serve our customers better, and realize the full potential of both of these extraordinary brands."

Founded in 2010 by Darrell Cavens and Mark Vadon and headquarter in Seattle in the US, Zulily went public in November 2013 with an IPO value of $2.6 billion. But in recent years, the eCommerce website has struggled with declining profit and revenue.

Cavens said: "QVC has built an amazing business with a great culture and incredibly similar understanding for bringing entertainment, discovery and value into the daily customer experience. This combination under Liberty is about investing in our future and providing a tremendous opportunity to accelerate our platform for growth of the zulily brand through the partnership with QVC."