FTX says it's not in talks with Robinhood

Sam Bankman- Fried's FTX exchange said it was not in talks with Robinhood Markets Inc, after a report on Monday claimed that the exchange was exploring such a deal.

On Monday, Bloomberg News reported that FTX was discussing how to buy the app-based brokerage, and that Robinhood had not received a formal takeover approach, citing people with knowledge of the matter.

In an emailed statement, Bankman- Fried said there were no active M&A conversations with Robinhood. We are excited about Robinhood's business prospects and potential ways to partner with them. Robinhood didn't want to say anything. The platform's shares fell by 5% in extended trading after jumping over 14% on the report.

The Founder and Chief Executive of FTX revealed a 7.6% stake in Robinhood last month, but said he did not intend to take control of the retail-trading platform.

Robinhood's dual-class shares give its founders control over 64% of the voting shares outstanding, making it virtually impossible for takeovers without their support.

This year, the popular trading platform has come under pressure as trading volumes fell from 2021's frenetic pace when retail investors used it to pump money into shares of meme stocks such as GameStop and AMC Entertainment.

The slowdown in high-growth technology stocks has resulted in a near 50% decline in Robinhood shares this year, as well as a sell-off in high-growth technology stocks. The company had a market value of nearly $7 billion as of Friday's closing price.

FTX's U.S. arm announced in May it would launch a stock trading platform by the end of the summer. It acquired Embedded Financial Technologies last week for an undisclosed amount, which would add custody, execution and clearing services to its equity trading platform.

FTX and its billionaire founder Bankman- Fried have rescued other players during the recent crash of the market. BlockFi provided the company with a $250 million revolving credit facility to help the firm avoid a liquidity crunch.