Make us your home page
Instagram

HSN to drop Asian TV shopping ties in IAC split

HSN will lose its last foreign broadcast entanglements — shared ownership in TV shopping channels in China and Japan — when the St. Petersburg-based network is spun off next month from Barry Diller's IAC/InterActiveCorp.

Diller decided to keep the joint ventures in Asia in his collection of 35 e-commerce businesses when he breaks the conglomerate into five pieces and releases his grasp on HSN after 13 years.

HSN has had a 30 percent ownership stake in Shop Japan since the channel was launched in 1996 in a joint venture with John Malone's Liberty Media and the Japanese Sumitomo Electric Industries Group. Unlike the U.S. version of TV shopping, the highly profitable Japanese channel deals mostly in luxury goods.

"We're not a financial partner (none of Shop Japan's results appear on HSN's books), but the stake is worth a couple hundred million dollars, so it's appropriate to keep it with IAC," said Tom McInerney, chief financial officer of Diller's IAC. The value of the Chinese joint venture with TVSN in Shanghai has been written down to almost zero.

Rival QVC has achieved most of its revenue growth in foreign markets. In constrast, HSN had a 12-year roller coaster overseas before pulling out of the United Kingdom, Italy, Austria, Switzerland, the Netherlands and, in 2007, Germany.

Diller's IAC on Wednedsay reported a net loss of $422-million, or $1.51 a share, in its final quarterly report as a far-flung conglomerate. That compared with net income of $95-million, or 31 cents a share a year ago in the quarter ended June 30.

HSN continued its rebound with an 11 percent gain in sales to $461-million. But results were dragged down, thanks to a 12 percent sales decline at the company's Cornerstone Brands catalog business. If reported as a standalone business, the new HSN would have had net operating income of $31-million, down from $38-million. The network reported gains in units shipped, average price paid and active customers.

"The momentum continued into July," said Mindy Grossman, HSN chief executive officer.

HSN to drop Asian TV shopping ties in IAC split 07/30/08 [Last modified: Monday, August 4, 2008 3:25pm]
Photo reprints | Article reprints

© 2017 Tampa Bay Times

    

Join the discussion: Click to view comments, add yours

Loading...
  1. Last orca calf born in captivity at a SeaWorld park dies

    Tourism

    ORLANDO — The last killer whale born in captivity under SeaWorld's former orca-breeding program died Monday at the company's San Antonio, Texas, park, SeaWorld said.

    Thet orca Takara helps guide her newborn, Kyara, to the water's surface at SeaWorld San Antonio in San Antonio, Texas, in April. Kyara was the final killer whale born under SeaWorld's former orca-breeding program. The Orlando-based company says 3-month-old Kyara died Monday. [Chris Gotshall/SeaWorld Parks & Entertainment via AP]
  2. Miami woman, 74, admits to voter fraud. Does jail await, or will she go free?

    State Roundup

    MIAMI — A 74-year-old woman pleaded guilty Monday to filling out other people's mail-in ballots while working at Miami-Dade's elections department.

    Gladys Coego
  3. Bigger ships carry Georgia ports to record cargo volumes

    Economic Development

    SAVANNAH, Ga. — Bigger ships arriving through an expanded Panama Canal pushed cargo volumes at Georgia's seaports to record levels in fiscal 2017, the Georgia Ports Authority announced Monday.

    The Port of Savannah moved a record 3.85 million container units in fiscal 2017, the state said, benefiting from the larger ships that can now pass through an expanded Panama Canal.
  4. Dragon ride in Harry Potter section of Universal closing for new themed ride

    Florida

    Universal Orlando announced Monday that it will close Dragon Challenge for a new "highly themed" Harry Potter ride to open in 2019 — sending wizard fans into a guessing game with hopes for a Floo Powder Network or the maze from the Triwizard Tournament.

    Universal Orlando announced Monday that it will close Dragon Challenge on Sept. 5 for a new "highly themed" Harry Potter ride to open in 2019. The ride, originally the Dueling Dragons roller coaster, was renamed and incorporated into the Wizarding World of Harry Potter when the hugely popular area opened in 2010.
  5. Would you let your company implant a chip in you?

    Working Life

    Would you ask an employee to get a chip implanted in her hand? Sounds invasive and intrusive. But come Aug. 1, one company in Wisconsin will be giving it a try.

    Three Square Market - a developer of software used in vending machines - is offering all of its employees the option to get a microchip implanted between the thumb and forefinger. [Photo from video]