Intuit—the financial software giant that owns Turbo. Tax and Mint—is buying personal finance company Credit Karma for more than $7 billion.
Why Intuit Buying Credit Karma Was a Problem Intuit’s acquisition of Credit Karma was questioned for potentially creating a tax preparation monopoly, meaning it reduces competition and leaves consumers with fewer tax filing options in what is an $11 billion dollar industry.
One way to think about this is in line with recent rumors, fintech giant Intuit ( NASDAQ: INTU) announced this week that it would be acquiring Credit Karma for $7.1 billion in a cash-and-stock deal that will add a new complementary personal finance platform to its stable of brands, which already includes Turbo, tax, quick Books, and Mint.
You could be wondering “How is Intuit financing the Mailchimp and Credit Karma deals?”
Intuit factored Credit Karma revenue into its projection for total 2022 sales of $11.05 billion to $11.2 billion, but that was before the Mailchimp purchase. Both deals are being financed through a combination of cash and stock and, in the case of Mailchimp, some new debt.
Is Credit Karma free to use?
Credit Karma is free to use and always will be. Continue or start to take advantage of our tools, information and products, like free credit scores and reports, personalized financial offers, Credit Karma Money Save and Spend and more to help you make financial progress. Do Intuit and Credit Karma share my data?
How much money does Credit Karma make?
Intuit notes that Credit Karma generated nearly $1 billion in revenue last year, which was up 20% from 2018. It’s less clear if Credit Karma was actually profitable. CEO Ken Lin said in 2017 that Credit Karma was profitable, but the company has also nearly doubled its head count to around 1,300 since then.
How much is Credit Karma worth?
Credit Karma is in the business of providing free credit score tracking—but apparently it’s worth billions to Intuit, which just closed its acquisition of the company in a deal valued at $8.1 billion including cash and stock. That’s up from the original value of $7.1 billion when the deal was initially announced in February.
What does Intuit do with my personal data?
Data from Intuit may be used to help create more certainty and to personalize your experience using Credit Karma products and vice versa, in some cases. You can see more on this in our Global Privacy Statement and this article: What does Intuit’s acquisition of Credit Karma mean for my data?
What’s Intuit’s largest acquisition in its history?
Credit Karma will be Intuit’s largest acquisition in its history. Intuit notes that Credit Karma generated nearly $1 billion in revenue last year, which was up 20% from 2018.