Crypto Exchange FTX Debunks News That It Plans To Acquire Robinhood

FTX’s founder and CEO Sam Bankman-Fried

On Monday, Bloomberg reported that Sam Bankman-led crypto exchange platform FTX was looking to acquire Robinhood Markets. “Sam Bankman-Fried’s FTX crypto exchange is exploring whether it might be able to acquire Robinhood Markets Inc., according to people with knowledge of the matter,” the report said.

The Bloomberg report which cited anonymous people familiar with the matter claimed that FTX was making internal decisions to buy Robinhood Markets. “FTX is deliberating internally how to buy the app-based brokerage, one of the people said, asking not to be identified because the matter isn’t public. Robinhood hasn’t received a formal takeover approach from FTX, another person said. No final decision has been made and FTX could opt against pursuing a deal, the people said,” Bloomberg reported.

FTX’s founder and CEO Sam Bankman-Fried has debunked the acquisition of Robinhood Markets. In an emailed statement the billionaire CEO said that “There are no active M&A conversations with Robinhood. We are excited about Robinhood’s business prospects and potential ways we could partner with them.”

Robinhood is yet to make a comment on the development. The company’s shares which soared 14 percent on the Bloomberg report were down about 5 percent in extended trading.

Robinhood is an American financial services company. It facilitates commission-free trades of stocks, exchange-traded funds, and cryptocurrencies via its eponymous mobile app introduced in 2015. FTX’s founder and CEO Sam Bankman-Fried has a 7.6 percent stake in Robinhood which he revealed last month. He made it clear that he had no plans of taking control of Robinhood talk less of acquiring it.

Robinhood recently launched in the UK with the acquisition of Ziglu, a fintech app that provides cryptocurrency capabilities such as allowing people to buy and sell cryptocurrencies. Robinhood said that its acquisition of Ziglu will help it expand into the UK as well as Europe. 

FTX, on the other hand, is a cryptocurrency exchange platform headquartered in The Bahamas. It provides cryptocurrency-related services to its users.

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