Fox Corporation Buys Majority Stake in FinTech Credible
In recent years several sectors have taken an interest in FinTech for both partnerships and investments. Still, the latest Silicon Valley deal comes from a seemingly unexpected suitor. As the Wall Street Journal reports, Fox Corporation has agreed to purchase a 67% stake in Credible Labs for $265 million. Additionally the company has committed to spending as much as $75 million in operating costs for Credible over the next two years. While the deal isn’t finalized yet, it is expected to close in the fourth quarter of 2019.
Founded in 2012, Credible serves as a one-stop-shop for those seeking personal loans, student loan refinancing, mortgages, etc. The site allows consumers to get pre-approved for loans and compare rates from several lending companies. In late 2017, the San Fransico-based company raised $50 million USD in an initial public offering on the Australian Securities Exchange.
To be clear, the Fox Corporation making the investment in Credible is not the Fox that became part of The Walt Disney Company earlier this year. Instead, Fox Corporation is the Rupert Murdoch-owned company that emerged after the sale and retained Fox properties not purchased by Disney such as the Fox Network, Fox Sports, Fox News, and more.
Commenting on his company’s investment in Credible, Fox Corporation chairman and CEO (and son of Rupert Murdoch) Lachlan Murdoch 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. 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.” Meanwhile Credible’s founder and CEO Stephen Dash said of the transaction, “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.”
For a media company finding a new identity after tearing down its former self, purchasing an online lending aggregator is definitely a different kind of move. However it’s intriguing to see business outside of the typical finance and banking bubble finding interest in the FinTech sector. On the whole, the development seems like a positive one and could mean a more diverse array of partnerships for startups in the future. As for Fox, we can only hope that their investment in Credible works out better than Murdoch’s purchase of MySpace.