ML
Moneylion INC
NYSE
425: MoneyLion CEO Discusses Gen Digital Acquisition and Mr. Beast Partnership on CNBC
Sentiment:
Form 425 Filing
26 December 2024 6:12 AM
MoneyLion's CEO, Diwakar Choubey, discusses the company's acquisition by Gen Digital and its partnership with Mr. Beast on CNBC's Fast Money, highlighting the potential for financial literacy through entertainment.
Better than expected
MoneyLion's growth and profitability improvements exceeded expectations, leading to the acquisition by Gen Digital.
Summary
- MoneyLion's CEO, Diwakar Choubey, appeared on CNBC's Fast Money to discuss the company's recent partnership with Mr. Beast and its acquisition by Gen Digital.
- The partnership with Mr. Beast on Prime Video's Beast Games aims to educate viewers about financial wellness while they are being entertained.
- The first episode of Beast Games garnered 90 million views and helped MoneyLion become the number one free finance app in the iOS App Store.
- Choubey explained that MoneyLion aims to help 30 to 40 million Americans make better financial decisions through its consumer finance marketplace.
- The acquisition by Gen Digital is expected to close in Gen Digital's fiscal 2026.
- Choubey noted that the FinTech industry experienced a 'FinTech winter' after the pandemic-driven boom of 2020 and 2021, but MoneyLion focused on achieving profitability.
- MoneyLion achieved 20% to 30% growth with increasing margins, making it an attractive acquisition target.
Sentiment
Score: 8
Explanation: The document presents a positive outlook for MoneyLion, highlighting its partnership with Mr. Beast, its acquisition by Gen Digital, and its focus on profitability. The CEO's comments are optimistic, and the overall tone suggests a favorable future for the company.
Positives
- MoneyLion's partnership with Mr. Beast provides significant visibility and brand exposure.
- The company's focus on profitability has made it an attractive acquisition target.
- MoneyLion's platform helps consumers make better financial decisions.
- The company achieved substantial growth and improved margins.
Negatives
- The document does not explicitly state any negatives about MoneyLion.
- The document mentions the 'FinTech winter' and the challenges faced by FinTech companies after the pandemic boom, implying past difficulties for MoneyLion.
Risks
- The acquisition by Gen Digital is subject to regulatory approvals and other closing conditions.
- The integration of MoneyLion and Gen Digital may be more difficult, time-consuming, or costly than expected.
- The anticipated benefits of the proposed transaction may not be realized.
- Changes in economic and market conditions, interest rates, and regulations could adversely affect the combined company.
- Potential adverse reactions from customers or changes to business or employee relationships could occur.
Future Outlook
The document includes forward-looking statements regarding the expected benefits of the proposed transaction between MoneyLion and Gen Digital, including strategic and financial benefits, the timing of the closing, and the ability to successfully integrate the businesses. These statements are subject to risks and uncertainties.
Management Comments
- Diwakar Choubey: 'I started MoneyLion in 2013 with a vision to be in the hands of 30, 40 million Americans, helping them make better financial decisions.'
- Diwakar Choubey: 'We wanted to get scale, right? So if you look at Mr. Beast, Jimmy Donaldson, hes got 600 million followers.'
- Diwakar Choubey: 'We were growing 20 to 30%, at increasing margins. And once that happens, it opens up the aperture.'
Industry Context
The announcement comes during a period of increased M&A activity in the FinTech sector, following a period of market correction and increased focus on profitability. MoneyLion's acquisition by Gen Digital reflects a broader trend of consolidation in the industry.
Comparison to Industry Standards
- The document does not provide specific comparisons to industry standards or comparable companies.
- However, it mentions the 'FinTech winter' and the challenges faced by many FinTech companies after the pandemic boom, suggesting that MoneyLion's focus on profitability has positioned it favorably compared to peers that struggled during this period.
Stakeholder Impact
- Shareholders of MoneyLion will receive consideration as part of the acquisition by Gen Digital.
- Customers of MoneyLion may benefit from the combined resources and capabilities of the two companies.
- Employees of MoneyLion may experience changes as a result of the integration with Gen Digital.
Next Steps
- MoneyLion stockholders will vote on the proposed transaction with Gen Digital.
- Regulatory approvals must be obtained.
- The companies will work to integrate their businesses.
Key Dates
- 2013: MoneyLion was founded.
- December 23, 2024: Diwakar Choubey, CEO of MoneyLion, was interviewed on CNBC's Fast Money.
- Fiscal 2026: The acquisition of MoneyLion by Gen Digital is expected to close.
Keywords
ML
Moneylion INC
NYSE
Sector: TBD
Filings with Classifications
Better than expected
3 April 2025 8:41 AM
Shareholder Communication
- The offer represents a premium of up to 80% over MoneyLion's 60-day VWAP, indicating a better outcome for shareholders compared to the company's standalone prospects.
Capital raise
5 March 2025 9:43 PM
Merger Announcement
- Gen Digital intends to fund the cash portion of the merger consideration using a combination of cash on hand and proceeds from an anticipated incremental $750 million term loan B facility.
Better than expected
25 February 2025 8:31 AM
Annual Results
- The company's net income of $9.1 million in 2024 is better than the net loss of $45.2 million in 2023.
- The company's total revenue increased by 28.9% year-over-year.
- The company's customer base grew significantly to 20.4 million.
Better than expected
25 February 2025 7:40 AM
Earnings Release
- MoneyLion's net income of $9 million is better than the net loss of $45.2 million in the previous year.
- The adjusted EBITDA of $92 million is better than the $46.4 million in the previous year.
- The revenue of $546 million is better than the $423.4 million in the previous year.
Better than expected
26 December 2024 6:12 AM
Form 425 Filing
- MoneyLion's growth and profitability improvements exceeded expectations, leading to the acquisition by Gen Digital.
Capital raise
10 December 2024 1:36 PM
Merger Announcement
- The document mentions the issuance of contingent value rights by Gen Digital in connection with the proposed transaction.
- These contingent value rights may involve the issuance of shares of Gen Digital's common stock, potentially diluting existing shareholders.
Better than expected
25 November 2024 5:30 PM
Debt Refinancing Announcement
- The refinancing significantly lowers the cost of capital and extends the debt maturity, which are both positive outcomes.
Better than expected
25 November 2024 5:29 PM
Debt Refinancing Announcement
- The refinancing significantly lowers the cost of capital and extends the debt maturity, which are both positive outcomes.
Worse than expected
7 November 2024 9:31 AM
Quarterly Report
- The company reported a net loss of $2.79 million for the quarter, which is worse than the previous quarter and indicates that the company is not yet profitable.
Better than expected
7 November 2024 7:35 AM
Quarterly Report
- The company's revenue, adjusted EBITDA, and customer growth all exceeded expectations.
- MoneyLion raised its full-year guidance for both revenue and adjusted EBITDA, indicating better-than-expected performance.
- The company achieved a net income before income taxes of $0.5 million, a significant improvement from a loss in the same quarter of the previous year.
Better than expected
6 August 2024 9:26 AM
Quarterly Report
- The company's net income improved significantly from a loss to a profit.
- The company's revenue growth was strong, exceeding expectations.
- The company's adjusted EBITDA improved substantially year-over-year.
Better than expected
6 August 2024 7:35 AM
Quarterly Report
- MoneyLion's Q2 2024 results exceeded expectations with record revenue, a return to profitability, and significant growth in key metrics.
- The company also raised its full-year guidance, indicating confidence in continued strong performance.
Better than expected
16 May 2024 7:30 AM
Legal Update
- The dismissal of the lawsuit is a better outcome than expected, as it removes a legal challenge and potential financial burden for the company.
Better than expected
7 May 2024 9:12 AM
Quarterly Report
- The company reported a net income of $7.1 million compared to a net loss of $9.2 million in the same period last year.
- The company's Adjusted EBITDA improved substantially to $23.5 million compared to $7.3 million in the same quarter last year.
- The company's total revenue increased by 29.2% year-over-year.
Better than expected
7 May 2024 7:32 AM
Quarterly Report
- MoneyLion's Q1 2024 results exceeded the high end of their guidance range across all metrics.
- The company achieved record revenue, net income, and adjusted EBITDA, indicating better than expected performance.
Better than expected
29 April 2024 4:15 PM
Proxy Statement
- MoneyLion's revenue of $423 million in 2023 represents a 24% year-over-year increase, indicating better than expected growth.
- The company's customer base more than doubled, reaching approximately 14 million by the end of 2023, suggesting better than expected customer acquisition.
Better than expected
7 March 2024 7:31 AM
Quarterly Report
- The company's full-year revenue, gross profit, and adjusted EBITDA exceeded expectations.
- Management is projecting the first positive GAAP EPS quarter in 2024, which is better than previous performance.
Disclaimer: This summary was generated by artificial intelligence and its accuracy is not guaranteed. The information provided here is for general informational purposes only and does not constitute financial advice, recommendation, or endorsement of any kind. It may contain errors or omissions. You should not rely on this information to make financial decisions. Always seek the advice of a qualified financial professional before making any investment or financial decisions. Use of this information is at your own risk.