Fox boosts DTC strategy with $265MN Credible Labs acquisition | Major Businesses | Business | News | Rapid TV News
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Demonstrating that going direct-to-consumer could mean more than simply offering content, media giant Fox Corporation is acquiring 67% of the equity in US consumer finance marketplace Credible Labs.
credible 5Aug2019
San Francisco-based Credible Labs operates a consumer finance marketplace designed to help consumers make better financial decisions through use of a proprietary technology platform that is integrated with credit bureaux and financial institutions. With its technology, consumers can compare instant, accurate pre-qualified rates from multiple financial institutions for loans.

Following the equity purchase valued at approximately $USD 265 million, FOX says that it will commit up to $USD 75 million in growth capital to Credible over the next two years. The transaction, which is expected to close in the fourth quarter of this year, is conditioned on the receipt of a majority vote of all Credible shareholders and is subject to the receipt of regulatory approvals.

Explaining the rationale for the purchase and the intended outcome, Fox Corporation executive chairman and chief executive officer Lachlan Murdoch said: “The acquisition of Credible underscores Fox Corporation’s innovative digital strategy that emphasises 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.”

Credible founder and CEO, Stephen Dash, will exchange shares equal to 33% of Credible’s outstanding common stock into units of a newly created FOX subsidiary. Dash will continue to serve as Credible CEO. Giving his comment on t e acquisition, he said: “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.”