Bankman-Fried Admires Robinhood but Won’t Buy it in Crisis
Crypto billionaire Sam Bankman-Fried said FTX is not in talks to purchase Robinhood.
Sam Bankman-Fried’s FTX crypto exchange said it is not in talks to acquire Robinhood Markets Inc, after a report on Monday claimed the exchange was exploring such a deal. Bloomberg News reported on Monday FTX was discussing internally how to buy the app-based brokerage and that Robinhood had not received a formal takeover approach, citing people with knowledge of the matter.
“There are no active M&A conversations with Robinhood,” Bankman-Fried said in an emailed statement. “We are excited about Robinhood’s business prospects and potential ways we could partner with them.”
Robinhood declined to comment. The retail-trading platform’s shares were down 5% in extended trading after jumping over 14% on the report. Last month, the founder and chief executive of FTX revealed a 7.6% stake in Robinhood but said he did not have any intention of taking control of the retail-trading platform.
Robinhood’s dual-class shares give its founders control of 64% of the voting shares outstanding, making it virtually impossible for takeovers without their support.
The popular trading platform has come under pressure this year as trading volumes ease from 2021’s frenetic pace – when retail investors used it to pump money into shares of so-called meme stocks such as GameStop and AMC Entertainment.
That slowdown, along with a sell-off in high-growth technology stocks, has driven a near 50% slump in Robinhood shares this year. The company had a market valuation of nearly US$7 billion as of Friday’s closing price.
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The post Bankman-Fried Admires Robinhood but Won’t Buy it in Crisis appeared first on .
Crypto billionaire Sam Bankman-Fried said FTX is not in talks to purchase Robinhood.
Sam Bankman-Fried’s FTX crypto exchange said it is not in talks to acquire Robinhood Markets Inc, after a report on Monday claimed the exchange was exploring such a deal. Bloomberg News reported on Monday FTX was discussing internally how to buy the app-based brokerage and that Robinhood had not received a formal takeover approach, citing people with knowledge of the matter.
“There are no active M&A conversations with Robinhood,” Bankman-Fried said in an emailed statement. “We are excited about Robinhood’s business prospects and potential ways we could partner with them.”
Robinhood declined to comment. The retail-trading platform’s shares were down 5% in extended trading after jumping over 14% on the report. Last month, the founder and chief executive of FTX revealed a 7.6% stake in Robinhood but said he did not have any intention of taking control of the retail-trading platform.
Robinhood’s dual-class shares give its founders control of 64% of the voting shares outstanding, making it virtually impossible for takeovers without their support.
The popular trading platform has come under pressure this year as trading volumes ease from 2021’s frenetic pace – when retail investors used it to pump money into shares of so-called meme stocks such as GameStop and AMC Entertainment.
That slowdown, along with a sell-off in high-growth technology stocks, has driven a near 50% slump in Robinhood shares this year. The company had a market valuation of nearly US$7 billion as of Friday’s closing price.
More Trending Stories
- Solana Could Emerge as the Silent Winner of the Crypto Bloodbath
- Catalonia’s Cataverse is Expected to Bring a Cultural Twist to Metaverse
- Vertical Intelligence is Here to Combat Business AI and Data Challenges
- Time is Running out for FAANG to Hire Chief Metaverse Officers
- LaMDA Pulled the ‘Human Emotion Database’ Card to Become Sentient
- Everything You Need to Know About Cognitive Analytics
- Top 10 Biggest Cybersecurity Funding in the First half of 2022
The post Bankman-Fried Admires Robinhood but Won’t Buy it in Crisis appeared first on .
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