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

(Reuters) -Sam Bankman-Fried’s FTX crypto exchange is exploring whether it might be able to acquire Robinhood Markets Inc (NASDAQ:), Bloomberg News reported https://www.bloomberg.com/news/articles/2022-06-27/sam-bankman-fried-s-ftx-seeking-to-buy-robinhood-hood 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.

“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.

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 (NYSE:) and AMC Entertainment (NYSE:).

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.