Bankman-Fried’s FTX internally mulling Robinhood deal – Bloomberg News

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The logo of Robinhood Markets, Inc. is seen at a pop-up event on Wall Street after the company’s IPO in New York City, U.S., July 29, 2021. REUTERS/Andrew Kelly

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June 27 (Reuters) – Sam Bankman-Fried’s FTX crypto exchange is exploring whether it might be able to acquire Robinhood Markets Inc (HOOD.O), Bloomberg News reported on Monday, citing people with knowledge of the matter.

FTX is discussing internally how to buy the app-based brokerage and Robinhood has not received a formal takeover approach, the report said.

Robinhood declined to comment. The retail-trading platform’s shares were down 4% in extended trading after initially rising on the report.

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“We are excited about Robinhood’s business prospects and potential ways we could partner with them,” Bankman-Fried said in an emailed statement. He, however, added that “there are no active M&A conversations with Robinhood.”

Last month, the founder and CEO 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 currently give its founders control of 64% of the voting shares outstanding. read more

The brokerage has come under pressure this year as trading volumes ease from 2021’s frenetic pace – when retail investors used the platform to pump money into shares of so-called meme stocks such as GameStop (GME.N) and AMC Entertainment (AMC.N).

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 has a market valuation of nearly $7 billion as of Friday’s closing price.

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Reporting by Manya Saini in Bengaluru and John McCrank in New York; Editing by Aditya Soni

Our Standards: The Thomson Reuters Trust Principles.

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