- Robinhood crypto exchange agreed to acquire Zigloo previously.
- Now they have cut down the offer to more than half.
- Galaxy Digital also pulled out from a $1.2 Billion deal.
Robinhood Pulling Out of The Deal
After the considerable drop in the Robinhood valuation, Ziglu app investors are all braced up for the blow that they are about to get. The organization slashed its value by almost 60%. The cryptocurrency exchange agreed to acquire the application in a 170 Million USD deal. But it appears as if things have changed considering the turbulence in the cryptocurrency market.
Looking at the recent bankruptcy events involving Celsius, Three Arrows Capital, and Voyager, the organization has cut down the offer to just 72.5 Million USD. This caused the share price to down surge from 52.18 USD to 34.04 USD. As per Mark Hipperson, founder of Ziglu, if Robinhood pulls out of the original deal, the organization would face an “extremely challenging market.”
Hipperson said that ‘he has spent considerable time in meetings with the Robinhood CEO and the team accountable for the negotiations and improvements in this new offer’s terms and conditions.’ Depending on the talks and other considerations, the Ziglu team believes that this revised proposal is the best and most rational way for the organization to move ahead.
This is not the high-profile deal to go down the hole. Mike Novogratz-owned Galaxy Digital pulled out from a 1.2 Billion deal to take over BitGo. The organization said that BitGo did not produce the necessary paperwork for this deal. But BitGo is not letting the company pull out of the deal easily. They are demanding 100 Million USD from Galaxy in the form of a “breakup fee.”
As per BitGo’s attorney, they are pulling out of the deal absurdly. BitGo says that Galaxy Digital should pay 100 MIllion USD to BitGo, or they are acting in bad faith.
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