Media mogul John Malone's Liberty Interactive said it would acquire Zulily in a cash-and-stock deal valued at $2.4 billion to tap into the online retailer's younger clientele and its strong mobile presence.
Liberty Interactive, the media conglomerate which owns home shopping network QVC, is known for investing in a range of digital commerce businesses.
"Zulily really is the QVC of the Internet for a younger generation, so it was a natural thing to pay attention to and think about," Greg Maffei, Liberty Interactive president and CEO, told CNBC's "Squawk on the Street" on Monday.
"Many traditional retailers are having problems growing and the trend continues to be towards online."
Zulily, a website that hosts "flash" sales of clothing primarily for women and children, counts Chinese e-commerce giant Alibaba Group Holding as one of its shareholders. Alibaba held about 9 percent of Zulily's total common stock as of May 15.
In the second quarter ended June 28, about 56 percent of Zulily's orders were placed from a mobile device, up from about 49 percent a year earlier.
The offer of $18.75 per share represents a premium of 49 percent to Zulily's Friday close. The company's stock was up 47 percent in trading Monday.
Up to Friday's close, Zulily's stock had fallen about 43 percent since its debut in November 2013.