Rumour mills are churning that FTX “might buy” Robinhood, a stock and crypto trading platform, but there is no formal word yet.
FTX CEO Sam Bankman-Fried, according to Bloomberg News, is deliberating internally as to how to go about buying Robinhood. However, it has to be noticed that the platform hasn’t been formally approached with an offer and FTX has not made a final decision. But HOOD shares surged on the news of the possible acquisition. A few weeks ago, Robinhood’s stocks were at an all-time low of $6.89. The brief leap in shares was welcomed.
Bankman-Fried has brushed off rumors of FTX’s plans to acquire Robinhood. He said they are excited about the platform’s business prospects and potential ways the two companies could partner. The FTX CEO highlighted that there are no active M&A conversations with Robinhood.
A spokesperson for Robinhood outlined its dual-class shareholder setup. The platform’s founders control more than half of its voting power. This means that no deal can be struck without the founders’ explicit approval. Bankman-Fried had bought 7.6% of Robinhood last month. He had clarified that he had no intention of using his stake in the company to change or influence its direction.
Robinhood has had its fair share of ups and downs. Goldman Sachs in April had downgraded HOOD from neutral to sell, weeks after the trading platform laid off hundreds of employees. But this morning, Goldman Sachs revised its position and upgraded HOOD back to neutral.