By Patrick Chu

 

Square Inc. shares declined 8.6% to $155.26 in Friday afternoon trading on news that it is in talks to buy the tax-preparation unit of Credit Karma Inc.

The Wall Street Journal, citing people familiar with the matter, reported Friday that a possible deal was in the works to address U.S. antitrust concerns. Intuit Inc. the maker of the popular TurboTax tax prep software, is seeking to buy Credit Karma for $7.1 billion. That purchase was proposed in February and is pending.

Terms of the Square-Credit Karma deal couldn't be learned, the WSJ reported. Credit Karma has spent months trying to find a purchaser of its tax-prep unit so that the acquisition by Intuit can move forward. Intuit is seeking to buy Credit Karma for its 100 million users and its online tools for consumer loans, not for its tax business.

Justice Department regulators are concerned that a combination of Intuit's TurboTax and Credit Karma's tax prep unit would lead to less competition in the online tax fintech sector.

 

Write to Patrick Chu at Patrick.Chu@WSJ.com

 

(END) Dow Jones Newswires

October 30, 2020 13:29 ET (17:29 GMT)

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