The $5.3 billion deal between the two was put to an end by the DOJ
On January 13, 2020, Visa announced that it was planning to purchase Plaid in a $5.3 billion deal -which could have been one of the largest to-date in the fintech industry - but this year things took a swing.
Visa's efforts ended after the Department of Justice pointed out that the company will eliminate the competition if it completes the deal, given that Plaid's software is used by major apps such as Venmo, Robinhood, and SoFi, to connect the apps with customers' bank account data.
The Department of Justice stated that the deal's termination is "a victory for American consumers and small businesses."
However, Visa and Plaid were quick to dismiss the allegations, saying that "we just believe that the lawsuit is wrong on the basis of facts and the basis of law."
Following the news, Visa stock price lost 1.89%.
Sources: fortune.com, cnbc.com
Users/readers should not rely solely on the information presented herewith and should do their own research/analysis by also reading the actual underlying research. The content herewith is generic and does not take into consideration individual personal circumstances, investment experience or current financial situation.
Therefore, Key Way Investments Ltd shall not accept any responsibility for any losses of traders due to the use and the content of the information presented herein. Past performance is not a reliable indicator of future results.