Plaid Pulled Plug on Visa Deal Over Worth, Not Antitrust Issues

Visa will not be shopping for fintech upstart Plaid, as the businesses on Tuesday introduced the “mutual termination” of the $5.three billion settlement that was signed one yr in the past and opposed by U.S. antitrust regulators. From a report: That is extra concerning the rising worth of fintech firms than it’s concerning the U.S. Justice Division. It additionally turns Plaid into a really interesting goal for development fairness traders, IPO bankers and SPAC sponsors. DOJ sued to dam the deal in November, claiming it could get rid of Plaid’s future capacity to compete within the on-line debit market, thus giving Visa a monopoly. Visa mentioned it could vigorously defend itself, partially as a result of Plaid has no on-line debit merchandise nor any within the pipeline. Visa additionally sought an expedited course of to start within the spring, whereas DOJ sought a December trial. The 2 sides met simply earlier than the vacations, however I am instructed that DOJ would solely agree to separate the distinction.

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