FTX Goes Shopping Amid Market Turmoil

This article’s GIF essentially represents FTX Founder and CEO Sam Bankman-Fried pulling up to every struggling company right now. 😏

The highly-capitalized crypto exchange has been on a shopping spree amid the market turmoil, providing cash-strapped firms with a lifeline…for a price. 🏷️

Last week, FTX agreed to provide crypto lender BlockFi with a $250 million revolving credit facility and then started talks to acquire part of the firm just days later. 

Additionally, Bankman-Fried’s quantitative trading firm Alameda provided Voyager Digital with $500 million. 💰

Now, rumors are flying that the company is considering a takeover of Robinhood, which has fallen from a $60 billion valuation last August down to $7 billion today. 📉

FTX diversified its business into stock trading just last month, so making a meal of a struggling competitor doesn’t seem that far-fetched.

$HOOD shares were up 14% in the regular session but fell 5% after hours following FTX’s denied any M&A talks with the company.

Whether a deal comes to fruition remains to be seen. What’s clear is that rumors will likely stick around as long as FTX continues to throw its weight around. 💪

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SoFi Investors Sell on Acquisition Announcement

SoFi plummeted 10% today on news of its M&A deal. SoFi announced its purchase of Technisys SA, a banking-software company, for $1.1 billion… that’s literally 10% of SoFi’s entire market value. 

This deal aims to implement Technisys’ banking technology to jumpstart SoFi’s financial services for its banking users. SoFi will gain a back-end platform capable of sustaining its personal banking app, customer accounts, and customer deposits. 💰 💰

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The Twitter Takeover: Musk’s Next Chapter

Elon Musk, the world’s richest man, held a Twitter poll asking users if they felt Twitter stood for “free speech.” 

Though Musk’s polls are usually fun and games — this poll has become the root of something completely different (and serious.)

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Buffett’s Biggest Deal in Six Years

Warren Buffett’s Berkshire Hathaway announced that it would acquire Alleghany Corp., an insurer, for $11.6 billion. Berkshire already has a strong insurance biz (Geico included), so the Alleghany acquisition will make a nice addition to the conglomerate’s robust portfolio. 💪

The Alleghany deal is also Warren Buffet’s biggest deal to close in six years — Buffet’s conglomerate is paying cash for each share of the insurer, $848.02/share. 💰 💰 Last Friday, shares of Alleghany closed at $676.75. This means Berkshire’s deal will offer the company a +23% premium per share. 

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Why Is Microsoft Paying So Much for A-B?

Microsoft shook the gaming world — as it so often does — several weeks ago when it announced it would acquire Activision-Blizzard for $68.7 billion.

However, one of the big questions investors asked was: why? Why would Microsoft spend so much money on the gaming giant? Besides the obvious answers, such as name recognition, strong brands, the opportunity to reform the downtrodden studio, and integrate it into its existing business, there are increasingly more questions. 

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