FTX says not in takeover talks with Robinhood

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

Bloomberg News reported on Monday that FTX was discussing internally 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 the business prospects of Robinhood and the potential ways we could 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.

Last month, the founder and chief executive of FTX revealed a 7.6% stake in Robinhood, but he did not intend to take control of the retail-trading platform.

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

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

The slowdown in high-growth technology stocks has resulted in a near 50% slump 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. Last week, it acquired partner Embedded Financial Technologies 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 criptocurrency market. The firm was helped by BlockFi with a $250 million revolving credit facility.