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