The same day in February 2020 that Credit Karma planned to announce that it had been acquired by Intuit for more than $7 billion, the stock market tanked, spooked by news that a novel virus had the potential to start a pandemic.
“I’m up at 5 o’clock in the morning, the Dow is flashing red … and we’re all like, ‘Are we going to do this?’” said Credit Karma CEO Ken Lin.
That deal eventually closed in December 2020, but in the intervening months, the U.S. Department of Justice forced the company to divest its tax business, and credit markets tightened considerably.
Full TechCrunch+ articles are only available to members
Use discount code TCPLUSROUNDUP to save 20% off a one- or two-year subscription
Fintech reporter Ryan Lawler interviewed Lin, Intuit CEO Sasan Goodarzi, Credit Karma’s chief people officer Colleen McCreary and other executives to learn about how they weathered COVID-19 and divestment while simultaneously crafting a new management structure.
“What had been a very profitable business for a very long time is all of a sudden very unprofitable, because you can’t pivot on a dime,” said Lin. “We had a lot of decisions to make.”
Thanks very much