Liberty Interactive Corp. (formerly Liberty Media Corp.) stands by your right to shop at home and online. The company is focused on video and e-commerce through its QVC home-shopping subsidiary and numerous online retail businesses. They include e-tailer Provide Commerce, online costume and party supply provider Celebrate Interactive (dba Celebrate Express), Backcountry.com, Bodybuilding.com, the online invitation site Evite, and Internet travel service Expedia, among other activities. Liberty Interactive Corp. was formed in 2011 when its predecessor restructured by merging and splitting off its Liberty Capital and Liberty Starz businesses under a newly-formed holding company, also called Liberty Media.
Change in Company Type
In September 2011 Liberty Media Corp. changed its name to Liberty Interactive Corp. following the split-off of its Liberty Capital and Liberty Starz tracking stocks.
Liberty Interactive rings up more than two-thirds of its sales in the US. Overseas, Japan and Germany each account for about 11% of the company's total sales. QVC has shopping channels in Germany, Japan, Italy, and the UK.
Liberty Interactive operates through its subsidiaries: QVC, Inc., Provide Commerce; Backcountry.com, Inc.; Bodybuilding.com, Inc.; and Celebrate Interactive Holdings, as well as its equity affiliate online travel firm Expedia, and others. QVC is its parent company's cash cow, accounting for 86% of its total sales in 2011. QVC broadcasts live televised shopping programs and sells merchandise online in the US and abroad.
E-commerce accounts for the balance of Liberty's sales. Companies under Liberty's online retail umbrella include: Provide Commerce (acquired in 2006), which sells and delivers flowers, its most significant product, as well as fresh fruits and confections and gifts; outdoor gear e-tailer Backcountry.com; sports, fitness and supplements seller Bodybuilding.com; and Celebrate Holdings, operator of online costume seller BuyCostumes.com and online party goods seller Celebrate Express.
Liberty Interactive's total sales increased 8% in 2011 vs. 2010, driven by a 6% increase in sales at QVC and a 20% rise in sales at its smaller e-commerce division. E-commerce sales benefitted from the growing popularity of online shopping, increased marketing efforts, and acquisitions. Indeed, Liberty's sales have increased 23% since 2007.
Operating income also grew at both business segments for an overall increase of about 2% in 2011 compared with 2010.
To grow, Liberty Interactive is focused on expanding QVC internationally (to Italy) and acquiring additional e-commerce businesses that complement and add to its holdings. To that end, parent company Liberty Media exchanged its 55% voting interest in Barry Diller's IAC/InterActiveCorp for all the capital stock of a wholly-owned subsidiary of IAC that holds the Evite and Gifts.com businesses and combined them with its BuySeasons business to form Celebrate Interactive Holdings (CIH) in late 2010. CIH is an online provider of everything to do with celebrations, from invitations and costumes, to party supplies and gifts. In late 2012 Liberty Interactive bought a majority interest in TripAdvisor from Diller and the Diller-von Furstenberg Family Foundation.