Credible Labs Valued At $397M In Deal With Murdoch’s Fox

Rupert Murdoch-controlled Fox Corp is buying personal finance broker Credible Labs in a deal valued at $397 million, Reuters reported on Monday (Aug. 5).

The San Francisco-based Credible Labs gives Fox a footing in personal lending as it seeks new investments following the $71 billion sale of its entertainment assets to Disney in 2018.

“The acquisition of Credible underscores Fox Corporation’s innovative digital strategy that emphasizes direct interactions with our consumers,” Lachlan Murdoch, Fox Corp’s executive chairman and chief executive, said in a statement to Reuters.

Listed on the Australian Stock Exchange, Credible’s platform is a clearinghouse and broker offering pre-qualified rates and options for the $1.6 trillion U.S. mortgage market, as well as student and personal loans.

Fox Corp, a spin-off of Twenty-First Century Fox, debuted on the Nasdaq and focuses on live cable sports and news.

The Fox subsidiary will be headed by Credible founder and CEO Stephen Dash, who is also the majority shareholder. The deal is subject to shareholder approval, although Credible’s board of directors, with a 13% shares stake, unanimously backed the deal, the article said.

Credible is valued at A$585 million less since its initial listing on the Australian stock market. Its shareholders will receive $2.21 in cash per CHESS depository interest (CDI). Fox’s offer is a 7% premium over its Aug. 2 close of A$2.06.

Bell Potter analyst Damien Williamson told Reuters that Credible is valued at A$2.78 per share, and many shareholders are anticipating more growth from the company.

“Premature is the word to describe how some minority shareholders see the transaction,” said Williamson. “This company is operating in a very large market and has the potential to do really well.”

Williamson also said there was potential for American rivals like LendingTree to launch competing bids for the company. The non-bank and online lending sector is developing fast in Australia, where it has a 32 percent share of the APAC alternative finance market. The market has grown 88 percent year over year, and it’s worth a total of $1 billion.