The Clap
Robinhood was up 14% yesterday on reports that crypto-exchange platform FTX was discussing a potential acquisition of the trading app.
The Deets
FTX CEO Sam Bankman-Fried later denied the reports, which were first reported by Bloomberg.
Bankman-Fried said that while “there are no active M&A conversations with Robinhood,” they are exploring “potential ways to partner with them”.
Why this Matters
In Robinhood’s case, companies won’t be able to just submit an offer that could go through only on shareholder votes.
That’s because Robinhood has a dual-class shareholder setup, whereby founders control more than half of its voting power. This means that no deal can be made without their approval.
