Red Ventures is paying $1.2 billion in cash to buy the online publisher of personal finance content. Fred Katayama reports.
The company that runs the website you use to find the best mortgage and CD rates is being sold. Red Ventures is buying Bankrate for $1.2 billion. It's an all-cash deal for the operator of websites such as Bankrate.com, CreditCards.com, and Caring.com. Bankrate also provides content and tools for clients such as Yahoo and MarketWatch. Red Ventures, a digital marketing company, says the purchase will deepen its footprint in the financial services industry by giving it access to "millions of users across multiple brands". Red Ventures values Bankrate at $14 a share, nearly half the price of its peak five years ago. Stephens analyst John Campbell said, "The price is pretty fair at this stage. There's been a lot of rigmarole over Bankrate with FCC, DOJ investigations ..., so there's somewhat of a fatigue or weariness with the Bankrate board and long-time shareholders." Bankrate stock shot higher at the market open Monday.