Rupert Murdoch's Fox Corporation has entered the fintech marketplace, spending $265 million for a 67% stake in financial comparison site Credible Labs.
Credible enables consumers to compare loan rates from multiple financial institutions across student loans, personal loans and mortgages.
Based in San Francisco and listed on the Australian Securities Exchange, Credible has developed a proprietary technology platform that is integrated with credit bureaus and financial institutions, offering consumers pre-qualified loan rates and refinancing options that they can click through to obtain.
Facing a challenging climate in its core entertainment business, FOX says it will commit up to $75 million of growth capital to Credible over approximately two years.
As part of the transaction, Credible founder and CEO Stephen Dash will exchange shares equal to 33% of the firm's outstanding common stock into units of a newly created FOX subsidiary.
Says Dash: "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."
The transaction is expected to close in the fourth quarter of this year.