Visa abandons takeover of Plaid after DOJ raises antitrust concerns

Automatic TRANSCRIPT

Visa has announced it is abandoning. Its five point. Three billion dollar planned acquisition of fintech firm plaid after the doj sued over antitrust concerns back in november. Now maybe visa plaid is a unique case. And i'm open to people's opinions about this. But i feel like this is the sort of acquisition that would have sailed through without anyone blinking an eye five or six years ago quoting the journal plaid. The government argued was a nascent but important competitive threat to visa and eliminating that threat would lead to higher prices less innovation and higher entry barriers for online debit services. Visa initially vowed to fight the government and a trial was scheduled for june in a california federal court. Visa and plaid mutually agreed to end of the deal. Plaid chief executive zach. Parrot said in an interview. That plan is in good shape to prosper independent company. Because consumers flocked to the digital finance plaid powers during the coronavirus pandemic the number of paying plaid customers has increased more than sixty percent since the visa deal was announced. Mr parrot added and quote. So what i've been hearing overnight is maybe plaid isn't all that broken up about this deal breaking up as it were because in a world where square is worth one hundred billion dollars pay pal is at two hundred and fifty billion five billion dollars for a key. Part of all of fintech was frankly looking like an absurdly low price like the steal of the century given the current markets. If somehow plaid could tomorrow how much you wanna bet. They'd hit at least a fifty billion dollar valuation. Or something crazy though. I would question what made them went to take the deal in the first place. What do we or do we not know about their underlying business. As alex ramble at a sixteen z tweeted quote plaid underpins virtually all offend tech. It is the strategic pillar that is allowing this industry to be built at unprecedented scale and speed. While i believe the doj decision to be misguided. I'm more excited for plaid. Anzac parents decision to remain independent. Plaid has been and will continue to be the most important piece of financial infrastructure. Powering the fintech services we use today and those we will use tomorrow. The opportunity for fintech has only accelerated and plaid's roadmap is even bigger better and more. Ambitious ludicrous speed. Go and quote and as ham hamster jogi tweeted your move. Patrick collison

Coming up next