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Robinhood May Be Acquired By FTX According to Bloomberg Report
Summary: Robinhood had one of its best trading days since its IPO last July following rumors that Crypto exchange FTX may be looking to acquire the company. Shares, up 18% after Bloomberg reported FTX was looking to purchase the company, according to people with "knowledge of the matter." In May, an SEC filing revealed that FTX ...
Robinhood had one of its best trading days since its IPO last July following rumors that Crypto exchange FTX may be looking to acquire the company. Shares, up 18% after Bloomberg reported FTX was looking to purchase the company, according to people with "knowledge of the matter."
In May, an SEC filing revealed that FTX founder and CEO Sam Bankman-Fried had purchased a 7.6% stake in Robinhood through an Antiguan firm called Emergent Fidelity Technologies Ltd. This appears to have been a precursor for a more significant acquisition because they are now looking to acquire the company outright.
No specific price or formal plans have been made yet, and FTX "could decide to not go forward with any plans." According to the report.
FTX CEO Sam Bankman-Fried, in an email statement, said, "We are excited about Robinhood's business prospects and potential ways we could partner with them, and I have always been impressed by the business that [CEO Vlad Tenev] and his team have built." He continued, "That being said, there are no active M&A conversations with Robinhood."
Although Robinhood shares are down 47% this year and 75% from their July IPO level, Goldman Sachs upgraded Robinhood from a "sell" to "neutral" this morning.
Author: Garrett Meifert
Tags: FTX,Robinhood
Link: Robinhood May Be Acquired By FTX According to Bloomberg Report [Copy]
