Bankman-Fried’s FTX Is Seeking a Path to Buy Robinhood
Less than a day back, Bloomberg had revealed that FTX might be exploring acquiring Robinhood. WatcherGuru had reported yesterday that Robinhood was not approached directly regarding the takeover.
No final decision was made by FTX regarding the matter, per Bloomberg’s source.
SBF denies deal with Robinhood
It didn’t take time for the news above to spread. People from the crypto community started speculating how this could end up being one of the most significant deals of all time.
However, the crypto exchange’s exec, Sam Bankman-Fried, cleared the air right after and said that there were no talks between the two firms. In an e-mailed statement to Reuters, he said,
“There are no active M&A conversations with Robinhood.”
The FTX exec did not hesitate in re-opening the prospects of a future partnership. He said,
“We are excited about Robinhood’s business prospects and potential ways we could partner with them.”
On the news of Bloomberg’s report yesterday, HOOD’s shares spiked by 14%. However, the hype shortly subsided, and the price dropped 5%. It was currently trading in the red.
Robinhood shares have only been shedding value due to the macro market’s extended bearishness. At $9.12 on Tuesday, the HOOD was down 74% on the yearly window.
Alongside, it is worth recalling that investors had used this trading platform last year to inject liquidity into shares of GameStop and AMC Entertainment. Post the bubble burst and the hype fizzled out, Robinhood has been bearing the brunt. Highlighting the repercussions of the same, Reuters noted,
“The popular trading platform has come under pressure this year as trading volumes ease from 2021’s frenetic pace…”
It wasn’t news that FTX and founder SBF are helping and bailing out distressed companies. With the crypto exchange keeping the partnership doors open, official talks do have chances of materializing in the future.