Rupert Murdoch’s Fox Corporation has announced it has bought 67 per cent of the equity of Credible Labs, a FinTech startup.
Founded in 2012, Credible Labs is an American online loan origination marketplace. The purchase alone is reportedly worth $265m, but Fox Corporation has also announced it is going to invest an additional $75m to scale the San Francisco startup over the next two years.
Speaking about the deal, Lachlan Murdoch, CEO and executive chairman at Fox Corporation as well as Rupert Murdoch’s son, said, “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.”
He added that Credible Labs will benefit from the Fox Corporation’s network of broadcasters.
Stephen Dash, founder and CEO of Credible Labs, will exchange shares equal to 33 per cent of Credible’s outstanding common stock into units of a newly created FOX subsidiary. He will continue to serve as CEO of Credible.
“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.
Fox Corporation expects that the deal will close by the fourth quarter of 2019. However, this is dependent on if a majority of shareholders and regulators accept it.
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