Western Union may have initiated takeover talks with MoneyGram, a person familiar with the deal told Bloomberg. The takeover will result in one of the largest providers of money-transfer services in the US should it sail through.
Bloomberg quoting reliable sources noted that no decision has been made so far. Representatives from both Western Union and MoneyGram declined to comment.
MoneyGram’s Walk-in business took a hit from coronavirus pandemic and stay-at-home directives recording decline in revenues. In Q1 of 2020 the firm recorded an 8 percent drop in revenues YoY to $290.9 million with revenue from money transfer amounting to $255.9 million.
Net loss was $21.5 million, including $10.1 million of additional non-cash tax expense from an increased deferred tax asset valuation allowance. Customers are resorting to online payments to send money to friends and family.
Money transfer to overseas markets is lucrative seeing that companies like Facebook through Libra Association are eyeing a piece of the pie.
MoneyGram previously received an offer from China’s Ant Financial in 2017 but the deal failed to materialize.
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