Visa and Plaid called off their agreement this afternoon, ending the consumer credit giant’s takeover of the data-focused fintech API startup.
The deal, valued at $5.3 billion at the time of its announcement, first broke cover on January 13, 2020, or nearly one year ago to the day. However, the Department of Justice filed suit to block the deal in November of 2020, arguing that the combination would “eliminate a nascent competitive threat that would likely result in substantial savings and more innovative online debit services for merchants and consumers.”
At the time Visa argued that the government’s point of view was “flawed.”
However, today the two companies confirmed the deal is officially off. In a release, Visa wrote that it could have eventually executed the deal, but that “protracted and complex litigation” would take lots of time to sort out.
It all got too hard, in other words.