- Fox to acquire 67% in Credible Labs in digital strategy push
- Credible adds to Fox’s “diverse digital offerings,” says CEO
- Fox commits $75 million to grow Credible over two years
Fox Corporation has unveiled plans to buy a 67% stake in leading consumer finance firm Credible Labs, as part of the American TV broadcasting company’s digital strategy.
Media giant Fox Corporation is diversifying beyond content with the announcement of its definitive merger agreement for the equity purchase of $265 million into Credible Labs.
Fox confirmed it will commit up to $75 million into the growth capital of Credible over the next two years.
Credible delivers a differentiated and personalised experience that enables consumers to compare instant, accurate pre-qualified rates from multiple financial institutions across student loans, personal loans and mortgages, helping consumers save money and make better financial decisions.
In a statement to the press, Fox said the acquisition of Credible would add to the company’s “diverse digital offerings,” which also include exclusive content via the Fox Nation service, the pay-per-view functionality on the Fox Sports app, live and on-demand content on Fox Now, and leading news sources including FoxNews.com, FoxBusiness.com and the websites of local Fox Television Stations.
Fox Corporation executive chairman and chief executive 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 chief executive Stephen Dash confirmed in a statement the exchange of equal shares to 33% of Credible’s outstanding common stock into units of a newly created Fox subsidiary.
The price per CHESS Depositary Interests of $2.21 AUD in cash represents a 31% premium to Credible’s closing price on the day prior to Fox’s initial May 29 proposal.
However, the deal is subject to certain regulatory approvals from the Australian Securities Exchange and other customary closing conditions.
Dash will continue to act as the CEO of Credible. 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.”
The transaction is expected to close at the end of this year and is conditioned on the receipt of a majority vote of all Credible shareholders, as well as a majority vote of all shareholders other than Dash and his affiliates.
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