FTX May be Exploring a Deal with Robinhood
Robinhood shares jumped on Monday after Bloomberg News reported crypto exchange FTX was considering acquiring the trading app.
The stock closed up 14% to its session high, but has fallen almost 5% in after hours. The stock was briefly halted on the news. I have not seen any official on that FTX was discussing a takeover plan internally. At this point, Robinhood declined to comment situation.
Sam Bankman-Fried, CEO of FTX, denied the report, but had the following comments
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 Vlad and his team have built. That being said there are no active M&A conversations with Robinhood. source
However, don't be too excited as is already a 7.6% stakeholder in Robinhood. He ended up paying $648 million for his position that's worth closer to $513 million today. Robinhood has had a hard time this year as its share have fallen approx. 55% YTD. The company reported a 43% decline in first-quarter revenue along with a decline in monthly active users in April. Times are tough, so now might be the time to get acquired. I cant wait to see how this turns out as FTX is becoming a beast.
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