Media firm Liberty Interactive, which is also the parent company of shopping channel QVC, is buying online retailer zulily in a $2.4 billion deal.

In an increasingly competitive market, e-commerce companies have to find a way to compete against giants such as Amazon. Zulily is one of them, and it just found its means to survive: getting under the wing of Liberty Interactive.

In a recent press release, the two companies officially announced that they have agreed to a definitive deal that will see Liberty Interactive buying all outstanding zulily shares for $18.75 a piece. The acquisition will go to the media company's QVC Group tracking stock.

Zulily is an online retail website focused on selling discounted clothes and merchandise, dating back to 2010, when Darrell Cavens (pictured above) and Mark Vadon founded the business. Cavens acted as president and CEO, while Vadon served as board chairman. The e-commerce company went public in 2013, selling 11 million shares at $22 per share, but its stock price has since declined.

Greg Maffei, president and CEO of Liberty Interactive, expressed his appreciation for Cavens and Vadon's work, which he sees as having resulted in a great business that leverages entertainment and discovery, bringing value to customers. According to Maffei, their business model falls perfectly in line with the philosophy of QVC.

"As the world leader in video and eCommerce retail, QVC is dedicated to reimagining shopping, entertainment and community as one," said Mike George, president and CEO of QVC. "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."

The deal should close sometime during the fourth quarter of this year and zulily will remain with its current management team, without having to move from its Seattle headquarters.

In other words, zulily will continue to operate as a separate brand, but will benefit from QVC's wider reach, scale, curation, video commerce expertise and relationships with vendors. At the same time, zulily will help boost QVC even further thanks to its e-commerce capabilities, its appeal to younger customers and its expertise in personalization.