Fox closes acquisition of 67 percent of fintech start-up
Fox Corp. announced that the company has closed on its $265 million acquisition of a majority stake in financial technology start-up, Credible Labs, according to reports. The company has been publicly traded in Australia.
The deal was announced last summer in which Fox has now acquired a 67 percent stake in the company while pledging a further $75 million in additional financing for its future growth. Credible, which was founded in 2012, offers online tools that allow borrowers to compare terms and options for loans.
Credible Labs shares will be delisted from the Australian Stock Exchange on Friday. However, each Credible shareholder of record will get A$2.21 in cash, and each holder of common stock is entitled to A$55.25 per share.
Fox CEO Lachlan Murdoch said when the deal was first revealed that it “underscores Fox Corp.’s innovative digital strategy.” But, not everyone on Wall Street is persuaded by the logic.
Michael Nathanson, a veteran media analyst with MoffettNathanson, rates Fox stock a “buy,” but questioned the Credible transaction in a note to clients. The deal “has not been seen as … well, credible,” he wrote, adding that it “rubbed investors the wrong way.”
The company will report financial results for its fiscal first quarter on Nov. 6.