Fox Corp. to Buy Majority Stake in Credible Labs for $265 Million as Part of Digital Strategy
Fox Corp. will buy 67 percent of the company and commit up to $75 million of growth capital over the next two years.
Fox Corp. said Sunday that it has entered into an agreement to buy a majority stake in Credible Labs Inc., which touts itself as "a leading consumer finance marketplace in the U.S."
Fox Corp. will buy 67 percent of the company for $265 million and commit up to $75 million of growth capital over the next two years.
Credible allows consumers to compare pre-qualified rates from multiple institutions across student loans, personal loans and mortgages, "helping consumers save money and make better financial decisions," according to Sunday's release.
"The acquisition of Credible underscores Fox Corp.'s innovative digital strategy that emphasizes direct interactions with our consumers to provide services they want and expand their engagement with us across platforms," Fox Corp. executive chairman and CEO Lachlan Murdoch said in a statement. "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."
Credible Founder and CEO Stephen Dash will continue to serve in his current role. As part of the deal, he will exchange shares equal to 33 percent of Credible's outstanding common stock into units of a newly created Fox subsidiary.
"Fox Corp.'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. "Credible's industry-leading user experience, combined with Fox, will provide greater impact and scale for consumers."
The transaction is expected to close in the fourth quarter of this year, upon a majority vote of approval by Credible shareholders, as well as a majority vote of all shareholders other than Dash and his affiliates. It is also subject to regulatory approvals.
Credible joins Fox Corp.'s digital portfolio, which also includes the Fox Nation service, the pay-per-view functionality on the Fox Sports app, live and on-demand content on Fox Now and news sources including FoxNews.com, FoxBusiness.com and the websites of local Foxx Television Stations.