FTX’s CEO Denies Rumors of Planning to Buy Robinhood
28 Jun, 2022•1 min read•Other
FTX is not planning to buy Robinhood. The CEO of crypto exchange, Sam Bankman-Fried, refuted rumors about any such deal.According to the latest report, SBF said he is excited about Robinhood’s business prospects and collaboration in the future but clarified that FTX was not exploring opportunities to acquire the financial service company.
Earlier reports suggested that FTX was in the process of having internal deliberations on how it can purchase the brokerage app but hasn’t made an offer yet.Robinhood has a dual-class shareholder structure, meaning – the founders of the company are given more power. This makes a potential case for buy-out impossible without their approval.CEO Vlad Tenev and CCO Baiju Bhatt both own about 8% of Robinhood and control 64% of the company’s voting power.Last month, a filing with the US Securities and Exchange Commission (SEC) revealed that SBF had bought a 7.6% stake in Robinhood.The billionaire said at the time that he regards Robinhood to be an “attractive investment” but has no intentions to change or influence the trading platform.Despite offering only a few digital assets on its platform, Robinhood’s revenue growth was notably influenced by crypto-related trading incomes.Currently, it is working on expanding its crypto offerings after first dipping its toes into the industry nearly four years ago.Robinhood also launched wallet functionality on its platform this year.Source
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.