In a significant development, a UK judge has resolved the heated valuation dispute between JPMorgan and Haris Karonis, the founder of Greek payments firm Viva Wallet. This ruling marks a critical step towards determining the true value of Viva Wallet and potentially accelerates its expansion plans.
JPMorgan acquired a 48.5% stake in Viva Wallet for approximately $800 million in 2022. Karonis, through his operation Werealize.com, holds a majority stake of 51.49%. Earlier this year, Karonis initiated legal action against the Wall Street giant, alleging that JPMorgan was deliberately hindering his company’s growth to lower its valuation. He claimed the bank blocked Viva Wallet’s entry into the US and new European markets.
Under the investment terms, Werealize.com would lose the right to reject a JPMorgan takeover bid if Viva Wallet’s valuation drops below €5 billion by June 2025. The London judge dismissed Karonis’s claim that JPMorgan had incentives to devalue Viva Wallet but outlined the correct methodology for assessing the firm’s worth.
Karonis welcomed the ruling, stating, “This paves the way for a proper valuation of Viva Wallet. The ruling holds that Viva should be valued according to its full market potential, which includes its lucrative US expansion plans.”
A spokesperson for JPMorgan commented, “With a financial stake in the company, we have repeatedly offered ways to help the company expand and succeed. The court has now provided a critical step to move forward with fair and transparent valuations – which could allow Viva to be sold soon, before the Fintech M&A market further softens.”
This resolution sets a clear path for Viva Wallet’s future valuation and underscores the importance of fair market practices in the dynamic fintech landscape.
