Robinhood’s chief executive officer has dismissed talk of a possible acquisition of the firm and set out the firm’s own goals for mergers and acquisitions.
Chris Koegel, head of investor relations at Robinhood, asked CEO Vlad Tenev during the firm’s second-quarter earnings call on Wednesday about “any word” on the firm getting bought by retail brokerage Charles Schwab or crypto trading platform FTX, according to a transcript published by The Motley Fool.
Sam Bankman-Fried, founder and CEO of FTX, disclosed earlier this summer that he bought a 7.6% stake in Robinhood, according to Barron’s. And last month, reports emerged that Robinhood could be an attractive target for Schwab as well as Morgan Stanley and market maker firm Citadel Securities, according to Forbes.
“So in one word, no,” Tenev said, according to the transcript. “I think we're in a great position as a stand-alone company. I love us as a stand-alone company,”.
“We've got a strong balance sheet. We've got an awesome team and we're delivering on our product road map, as I mentioned, at a pace that we haven't seen before. So actually, I'd flip it on the other side,” the CEO added.
Tenev said that Robinhood had around $6 billion on its balance sheet that it could use to acquire other firms “that can help us accelerate our road map,” adding that the firm is “on the lookout,” according to the transcript.
Robinhood chief financial officer Jason Warnick likewise said in the call that “the best use of our cash right now is to fund the business, both our organic initiatives to drive growth, as well as potentially to use for acquisitions.”
Tenev also said that Robinhood is on track to close the planned acquisition of U.K.-based crypto platform Ziglu by the end of the year, which would “accelerate our entry into the U.K. and the rest of Europe,” according to the transcript.
Do you have a news tip you’d like to share with FA-IQ? Email us at firstname.lastname@example.org.