Square Inc. Shares Drop on WSJ Report of Possible Acquisition of Credit Karma Tax Unit
October 30 2020 - 1:44PM
Dow Jones News
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)
Copyright (c) 2020 Dow Jones & Company, Inc.
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