So the fairy tale continues. The back and forth battle keeps on rocking. First Visa tries to buy Earthport and everyone thought it was a done deal until Mastercard jumped into the mix and upped the price 10%. Then we get the news early this morning that Visa has jumped back in and boost there offer by 12%. Nothing better than watching 2 heavyweights go at it!
2 week ago today we covered the breaking story of how Mastercard jumped in and tried to out Visa plans on purchasing Earthport by upping the price 10%.
Let’s be honest we all knew Visa was not going to shy away, we knew a counteroffer was coming and boy did it ever. Visa offered 37 pence in cash for each Earthport share, a 23 percent premium to its initial bid and 12 percent higher than Mastercard’s offer last month. Earthport is sitting back and watching the money fly at them. Since this bidding war began Earthports shares are up 38%.
So why are Visa and Mastercard going to war over Earthport? It’s Simple – Cross-Border payments. Yes, that’s right! Cross-border payments. And who do we know to be a partner of Ripple – yes you guess it Earthport!
In the end, Ripple is the real winner here. Earthport offers a lower-cost option to traditional payments systems by allowing banks and money transfer firms to have a single relationship instead of multiple ties with various payments channels around the world AKA RippleNet.