Tag: Technology

Red Ventures and Bankrate agreed to divest Bankrate’s Caring.com business unit to settle FTC charges that their $1.4 billion merger would likely harm competition in the market for third-party paid referral service for senior living facilities. According to a complaint filed by the FTC, Red Ventures and Bankrate supply proprietary internet content and customer leads for a variety of industries. Caring.com is a wholly-owned subsidiary of Bankrate, while two of Red Ventures’ largest shareholders jointly own A Place for Mom.com, the largest provider of such services. According to FTC’s complaint, Caring.com and A Place for Mom.com are each other’s closest competitors, competing for national and local business. The complaint alleges that the two Red Venture shareholders have the collective ability to significantly influence management of Red Venture and Caring.com. Thus, if consummated, the transaction may increase the chance for Red Ventures to unilaterally exercise market power and the potential for coordinated interaction between Caring.com and A Place for Mom. Under the terms of the proposed settlement, the parties will divest Caring.com no later than six months after the acquisition and provide transition services to an FTC-approved buyer.