Fox agrees to buy fintech for $265 million
Fox Corp. has agreed to buy a majority stake in the consumer finance marketplace Credible Labs for $265 million.
The move comes at time when Fox is seeking new revenue opportunities after selling much of Twenty-First Century Fox's television and movie business to The Walt Disney Co. earlier this year for $71.3 billion. Fox in May bought a 4.99% stake in an online sports betting company called Stars Group for $236 million. Fox said the Credible acquisition is part of a plan to increase digital interactions with viewers, and will become a resource for the Fox Business Network.
San Francisco-based Credible, which is listed on the Australian Stock Exchange, enables consumers to compare prequalified rates from multiple financial institutions on student loans, personal loans and mortgages. Fox would acquire a 67% stake in the company and commit up to $75 million in growth capital over the next two years.
“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 our core brands,” Lachlan Murdoch, Fox’s executive chairman and CEO, said in a press release Sunday.
The deal is subject to approval from the Australian Securities Exchange and a majority of Credible shareholders. It is expected to close in the fourth quarter.
Stephen Dash, Credible’s founder and CEO, will continue to serve in that capacity once the deal is finalized.
“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,” Dash said in the press release.