Robinhood buys Say Technologies in $140M all-cash deal

abdelaziz Fathi

Popular trading app Robinhood is adding some muscle to its offering, having acquired New York-based investment communications firm Say Technologies for a $140 million all-cash deal.

Say is a fintech business founded nearly three years ago to give investors a better way to engage with the companies they own, and to give corporate managers tools to better understand their investors. The startup offers retail investors a communication platform to address their questions to the management of public companies they invest in. Shareholders can submit and vote for questions to be asked on annual meetings, earnings calls and other events.

“We founded Say to give investors a better way to engage with the companies they own, and to give companies tools to better understand and access their investors. As part of the Robinhood family, we’ll be able to further our goal of creating a new ecosystem of ownership and engagement to benefit all investors and companies,” said Alex Lebow, Co-Founder & CEO of Say Technologies.

As part of the Robinhood family, Say will keep offering its proxy voting services and Q&A platform to existing customers.

“By joining forces with Robinhood, we’ll keep serving our existing customers, while continuing to build a new ecosystem of ownership and engagement to benefit all investors and companies,” the company added.

Following the news, shares of Robinhood dropped 4 percent but the volatile stock still up more than 50% in its second week of trading.

Robinhood, which started its NASDAQ listing earlier this month under the ticker HOOD, had a meme-stock moment last week after news suggested that existing shareholders will sell up to 98 million shares over time. The surprising share sale announcement knocked the stock down by 30%, but it recouped losses after Robinhood clarified that these sales would not start right away.

Robinhood was one of the most anticipated IPOs of the year even as the upstart brokerage firm faces regulatory scrutiny on multiple fronts. Most recently, its co-founders, Vladimir Tenev and Baiju Bhatt, faced probes as they are not licensed by the Financial Industry Regulatory Authority (FINRA).

The discount brokerage said in July that the probe is at an advanced stage and could result in fines, penalties and monetary settlements, as well as additional compliance requirements or other consequences.

The news was the latest headache for Robinhood. The free-commission brokerage was also sued by the family of a 20-year-old student, who committed suicide last year thinking he incurred losses of over $700,000 on his Robinhood account.

Read this next

Metaverse Gaming NFT

LongHash launches $100 million fund focused on DeFi, NFT, GameFi, Metaverse

LongHash Ventures has backed more than 60 projects, including Polkadot, Astar, Dodo, Coinshift, Acala, Zapper, Gnosis Safe, and Balancer.

Digital Assets

Midas launches investment strategies for the ‘crypto winter’

According to Iakov Levin, the platform’s CEO and founder, Midas will roll out more strategies in the upcoming months to achieve higher flexibility and further expand the investor toolkit.

Digital Assets

Bitcoin.com Wallet adds several ERC-20 tokens

The product expansion includes representatives of the DeFi world, the Metaverse, and the largest stablecoins.

Market News

Savvy Investors to Profit Whether the Stock Market Rebounds or Not

Equities have gone up enormously since the low. SP500 has gained 13.88% since June 17. In August, the indices drifted sideways. On Wall Street, veteran investors expect a move in either direction.

Industry News

Wall Street-backed MEMX obtains SEC approval for options trading platform

The company has raised more than $135 million in funding from 18 stock trading and investing heavyweights, including BlackRock, Citadel Securities, and Morgan Stanley.

Industry News

Amundi US launches ESG strategy that seeks to outperform S&P 500

Amundi’s Responsible investing team includes more than 45 specialists, and its ESG analysis covers more than 13,500 issuers across debt and equity.

Industry News

Verto launches embedded FX payments solution

The Verto API automates currency conversions, tracks payments and exchange rates in real-time, and is being launched in the follow-up of a $10 million in Series A funding last year.

Industry News

SEC awards over $16m to whistleblowers after another successful enforcement action

The program is 10 years-old and has arguably played a critical role in the Division of Enforcement’s ability to effectively detect wrongdoing, protect investors and the marketplace, and bring violators to justice.

Digital Assets

Ripple submits most succint explanation of Hinman issue in XRP lawsuit

It might be useful to get up to date as this could be the end of the road for the SEC.

<