Square shares dropped following a report that the payment system operator is in speak to buy the tax-prep business of Credit Karma.
Square shares ( SQ) – Get Report dropped following a report that the electronic payment system operator remains in speak with buying the tax-preparation organization of personal finance company Credit Karma.
Credit Karma is wanting to divest the unit to avoid prospective antitrust issues associated with its pending sale to Intuit ( INTU) – Get Report, the owner of TurboTax, according to The Wall Street Journal.
Square declined to comment on TheStreet regarding the report.
Shares of Square, San Francisco, at last check were down 8.6% to $155.32 while Intuit shares fell 3% to $315.88.
The purchase would allow Square to additional develop out its Money App platform, which makes it possible for clients to send money to buddies and conduct stock trading, to name a few functions, the Journal reported.
Intuit said in February that it would buy Credit Karma for $7.1 billion.
“By joining forces with Credit Karma, we can develop an individualized monetary assistant that will help customers discover the right monetary products, put more money in their pockets and provide insights and suggestions,” said Sasan Goodarzi, Intuit’s primary executive, in a declaration in February.
Credit Karma uses details on charge cards and other financial items focused on customers, along with a complimentary credit-check tool.
The site generates income by displaying customized recommendations for monetary items, such as charge cards, and collecting costs from those organizations if clients sign up.
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