- Fox Corp. announced it is buying a majority stake in consumer finance marketplace company Credible Labs in a deal valued at $265 million
This week, Fox Corp. announced it is buying a majority stake in consumer finance marketplace Credible Labs. The deal is valued at $265 million and Fox is contributing an additional $75 million of growth capital over two years — which will give Fox Corp. a 67% stake in the company. Credible Labs is listed on the Australian market.
And this deal is the company’s second acquisition since forming new Fox following Disney’s $71.3 billion acquisition of its entertainment assets. In May, Fox had purchased a 4.99% stake in online sports betting company Stars Group for $236 million.
“The acquisition of Credible underscores Fox Corporation’s innovative digital strategy that emphasizes direct interactions with our consumers to provide services they want and expand their engagement with us across platforms. Credible, which has tremendous synergy with core brands such as FOX Business and FOX Television Stations and will benefit from our audience reach and scale, will drive strategic growth, further develop our brand verticals and deepen consumer relationships,” said Fox Corp. executive chairman and CEO Lachlan Murdoch.
Credible is a marketplace that allows consumers to shop for student loans and mortgages while comparing rates. And the company states that it offers “the power and confidence to improve your financial future.”
Fox is planning to use Credible data on the digital sites for its local TV stations – -which reaches nearly half the country. Plus Credible also advertises on Fox and other media outlets like WarnerMedia’s CNN and Comcast’s MSNBC.
“Fox Corporation’s record of innovation and focus on audience engagement will further enhance Credible’s position as a leading consumer finance marketplace in the United States, creating opportunities for organic growth and the expansion of the Credible platform. Credible’s industry-leading user experience, combined with FOX, will provide greater impact and scale for consumers,” said Dash,” added Credible founder and CEO Stephen Dash.
Dash is going to maintain his position leading the company. And under the deal terms, he is going to convert his 33% stake in the company to units in Fox.
This deal is expected to close in Q4 of this year.
