VISA and Plaid call off merger

Kate Rooney joins 'Closing Bell' to report Visa and Plaid are calling off their planned merger. "We are confident we would have prevailed in court as Plaid's capabilities are complementary to Visa's, not competitive," said AI Kelly, Chairman and CEO of Visa Inc. For access to live and exclusive video from CNBC subscribe to CNBC PRO: cnb.cx/2NGeIvi
Visa has ended its takeover efforts of Silicon Valley start-up Plaid about two months after the Department of Justice filed an antitrust lawsuit on grounds that it would limit competition in the payments industry.
The company said the decision to end the merger was mutual.
About a year ago, on Jan. 13, 2020, Visa announced that it planned on acquiring Plaid in a deal worth $5.3 billion - roughly double the start-up’s last private valuation. The company’s API software, often referred to as the “plumbing” behind fintech companies, lets start-ups connect to users’ bank accounts. The company says it integrates with more than 11,000 banks.
Plaid CEO Zach Perret said in a statement the company will work with Visa as an investor and partner going forward.
The deal hit a snag late last year after the DOJ pointed out Visa’s acquisition could eliminate a nascent competitive threat. The DOJ cited Visa CEO Al Kelly’s description of the deal as an “insurance policy” to neutralize a “threat to our important US debit business.”
The department argued at the time there was potential for the deal to extend a Visa “monopoly” on debit transactions, adding that it “must be stopped.”
The DOJ said in a statement Tuesday that termination of the merger was “a victory for American consumers and small businesses.”
The lawsuit symbolized a step that many tech critics say should have been taken by the Federal Trade Commission back when it was approving Facebook’s acquisitions of Instagram in 2012 and WhatsApp in 2014.
Now, those mergers are re-entering public discussion. Late last year, the FTC and several states filed antitrust lawsuits against Facebook, alleging it used its market power to squash competitors before they could become true rivals to Facebook’s empire. The suits suggest remedies that could include requiring Facebook to spin off those two businesses.
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评论 

  1. mrpmj00

    mrpmj00

    12 天 前

    buy AMAZON, FACEBOOK, NVIDIA, capitol riot means a covid19 petri dish; we need another lockdown. we have streaming and don't need to travel or go to a commercial theater and avoid covid19, mass shooting (gun sales doubled in 2020), police killing nonwhites like George Floyd, and exploding RVs like in Nashville, capitol rioters bringing pipe bombs

  2. Zachary Carlson

    Zachary Carlson

    12 天 前

    This is good news

    • SGANET

      SGANET

      11 天 前

      It’s great news if Chamath reverse merger it with IPOF... for me :)

    • Zachary Carlson

      Zachary Carlson

      12 天 前

      @tommy s Visa was overpaying for this acquisition.

    • tommy s

      tommy s

      12 天 前

      how is this good news?

  3. Meet Johnny

    Meet Johnny

    12 天 前

    ​MARA stock going to $40 soon. Buy now while it's still cheap.

  4. HappyAlexandros

    HappyAlexandros

    12 天 前

    Hilter and Stalin burned books. Twitter and Facebook delete messages. Find the difference! They silenced a ruling President of the USA. Guess who is next? It's you! Democracy does not fear free speech. Authoritarian regimes fear free speech!

    • OneNewHope

      OneNewHope

      12 天 前

      First of all... "ruling" president??? Second of all, the first amendment is a protection *from* the government. Not private companies. Third of all, why are Trump's poop Tweets free speech, but kneeing during the national anthem not free speech?

  5. Beauty On Earth

    Beauty On Earth

    12 天 前

    1st. To everyone who is reading this, you’re cool and adorable. Please stay safe and healthy! Eat more fruits and veggies for a healthy lifestyle! Lastly, let's do whatever we can to save our beautiful Planet Earth!

    • server1

      server1

      11 天 前

      Less people would be good for the Planet

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