We all thought that Visa “purchased” Earthport, but this seems not to be the case. Mastercard has thrown their gloves into the ring and upped the bid for Earthport by a 10% premium. This bid from Mastercard has forced Earthport to pull out of the Visa deal and take the new offer to there board members for consideration. Earthports shareholders are holding a meeting from February 21st, so hopefully, we get some kind of announcement in the coming months.
Mastercard’s rival bid comes at a ten percent premium to Visa’s valuation, moving Earthport to withdraw its recommendation of the Visa Offer. With a better offer on the table, the company is now proposing to adjourn the Earthport Shareholder meetings convened for 21 February 2019 to consider the Visa Offer.
The interim chairman at Earthport Sunil Sabharwal has stated “The Board of Earthport is pleased to recommend Bidco’s cash offer for Earthport which is at a 10 percent. premium to the Visa proposal. This offer provides our shareholders with even greater value in cash for their shares”
So what does this all mean? Why did Mastercard jump in to blow this deal up? Are they just running up the price on Visa or are they truly interested in Earthport and what they bring to the table? In sports we see this all the time, teams will jump in on free agent signing but have no interest in actually signing a player, they are just making others pay higher fees to get them….could this be the case here with Mastercard?
In our opinion, Mastercard has seen what Earthport is doing with cross-border payments, they see the amount of money that is running through cross-border payments and they know the deal that is in place between Ripple and Earthport. This is an easy way for Mastercard to adopt Ripples technology and bring on some heavy hitters through this “merger”. If you head over to our XRP Research page you can find the previous deal we talked about with EarthPort, Ripple and India.
@BankXRP has tweetd about this development this morning:
Mastercard takes on Visa in tussle over Earthport. https://t.co/j0dOo1s8og
— 𝗕𝗮𝗻𝗸 𝑿𝑹𝑷 (@BankXRP) January 25, 2019