FOX Business parent Fox Corp. is buying a majority stake in Credible Labs, a consumer finance marketplace.
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The deal, which is valued at $265 million, with Fox contributing an additional $75 million of growth capital over two years, will give Fox Corp. a 67 percent stake in the San Francisco-based company, which is listed on the Australian market. The deal is the company’s second acquisition since the formation of new Fox following Walt Disney’s $71.3 billion acquisition of its entertainment assets. In May FOX purchased a 4.99 percent stake of online sports-betting company Stars Group for $236 million.
“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,” said Fox Corporation Executive Chairman and Chief Executive Officer Lachlan Murdoch.
Credible, a marketplace that allows consumers to shop for student loans and mortgages while comparing rates, states it offers consumers “the power and confidence to improve your financial future.” Fox also plans to use Credible data on the digital sites for its local TV stations, which reach almost half the country, as noted by The Wall Street Journal. Credible advertises on Fox and other media outlets including WarnerMedia’s CNN and Comcast’s MSNBC.
Founder and CEO Stephen Dash will maintain his position leading the company. “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,” said Dash. Under the deal terms, he will convert his 33 percent stake in the company to units in Fox.
The deal is expected to close in the fourth quarter.