When Is Ripple Going to Acquire Someone?

[gamblin310]

They're still sitting on that $200 million they raised in December.

[thinlyspread]

Good question. Acquisitions or acqui-hires will be fascinating, but I reckon Ripple might IPO before we see big ones, so they have a steady capital inflow and recognition. 

I am a bit weird on this one I know, but, I reall think they should go on the hunt for Nexo. Huge book of loans. Trouble is it wouldn't come cheap given Nexo's growth and ambitions, and in a bull market it'll become even more expensive. Maybe they can scoop up a smaller company in the fintech space with good books and banking connections but who are struggling to reach new markets. 

https://www.crunchbase.com/organization/nexo-0ab2

[getitdone]

Nexo planning its own IPO but I agree

[Guest]

They'd probably IPO and then start scooping up companies. Be interesting to see what happens to XRP once the stock is issued. Whether it's just listed as a total asset. Ideally they make the right moves to acquire an organization like Fleetcor in a few years. 

If they stay private, and XRP doesn't make it, you're looking at a bank buyout I would think for the software and patents.

[King34Maine]

Well, in the 20th Ripple Drop episode (03:00 - 03:40) Brad G. talked about how Ripple was in very strong position financially and that they were considering making strategic investments and/or possible acquisitions this year. If we take a look back at the end of 2019, Ripple announced the acquisition of Algrim and Logos towards the end of September. We're quickly approaching the tail end of September. If they continue this trend, we could hear some news shortly regarding acquisitions.

On 9/19/2020 at 3:28 PM, thinlyspread said:

I am a bit weird on this one I know, but, I reall think they should go on the hunt for Nexo.

I'm thinking their acquisitions will be more so for shoring up engineering staff for the development of the many products they have in the pipeline for Xpring, RippleNet, and potentially the Interledger Foundation (ILF). It looks like the ILF has officially acquired the non-profit/charitable designation from the IRS allowing the foundation to build a more formal leadership structure along with the financial/tax benefits of a non-profit to exponentially scale the platform. However, it's anyone's guess right now.

Edited September 21, 2020 by King34Maine

[King34Maine]

2 hours ago, StirCrazy said:

If they stay private, and XRP doesn't make it, you're looking at a bank buyout I would think for the software and patents.

I don't think that it would ever get to this point, but just to entertain the idea, it would most likely NOT be a bank buyout. More like a large tech company (i.e. Microsoft, Google, Amazon, Facebook, etc.) No bank wants to be under subjugation from another bank. This was one of the many issues JP Morgan had when trying to on-board partners to its Ethereum-based permission DLT platform, Quorum. This was one of the reasons they sold it to ConsenSys.

[Guest]

11 minutes ago, King34Maine said:

I don't think that it would ever get to this point, but just to entertain the idea, it would most likely NOT be a bank buyout. More like a large tech company (i.e. Microsoft, Google, Amazon, Facebook, etc.) No bank wants to be under subjugation from another bank. This was one of the many issues JP Morgan had when trying to on-board partners to its Ethereum-based permission DLT platform, Quorum. This was one of the reasons they sold it to ConsenSys.

Assuming XRP isn't involved in this worse case scenario, being under subjugation would really be determined by what pieces are chosen to be preserved, what patents, etc. As one example, RippleNet's a network and it would probably be stripped and reorganized. JP Morgan would never be able to pull off a network of banks called JPMorganNet, I agree. 

[jargoman]

Ripple should acquire rtgs global 

[Spartaksus]

Moneygram. Ripple wouldn´t pay 15M in development fees each Q just for piloting of ODL. Maybe instead of own IPO Ripple will make reverse merger with MGI.

[RecentChange]

2 hours ago, Spartaksus said:

Moneygram. Ripple wouldn´t pay 15M in development fees each Q just for piloting of ODL. Maybe instead of own IPO Ripple will make reverse merger with MGI.

Doubt this. How will the initial investors cash out. Where as an outright IPO will potentially bring them a lot of cash. MG financials aren't good.

[Guest]

7 hours ago, strikerjax said:

Doubt this. How will the initial investors cash out. Where as an outright IPO will potentially bring them a lot of cash. MG financials aren't good.

Yeh MGI's stagnant stock price says it all since the Ripple relationship was first announced. Fleetcor is slowly acquiring all the corporate FX API business in the industry right now. The latter makes more sense as far as a relationship for Ripple.

[peanut56]

MGI has been between $1-$6 over the past two years. I would not call that stagnant, but a slow process of getting rid of massive amounts of debt while speculators look to turn a profit. As far as acquisitions are concerned I'm sure they have their eye on the markets while simultaneously being involved with the xspring projects. That may or may not have strings attached, IDK. 

If they are behaving anything like tesla (acquisition of a capacitor manufacture, scouting for battery tech start-ups) then they are looking for companies to acquire, but they must find a really good fit. Tesla was an example I had in mind. I think people should also remember that acquisitions are expensive and it means that then there are two companies to run once that acquisition occurs. It has to be a near perfect match.

MGI alone would be really expensive. Ripple has cash, but MGI would be hundreds of millions. MGI may very well go bankrupt in the end. At the same time I can still buy stuff online from RadioShack and SEARS.

Since Ripple's focus is money transfers that limits prospects. So it seems things like mobile money transfer apps are cheap. Maybe once the younger generation moves into a more financially secure positions then paying with telephones and online will be commonplace.

Things like xrp could allow all of us to buy directly from a manufacturer from anywhere in the world. Hopefully regualtions will catch up and taxes of imported goods will be less complicated to purchase for the consumer.

[Guest]

18 minutes ago, peanut56 said:

MGI has been between $1-$6 over the past two years. I would not call that stagnant, but a slow process of getting rid of massive amounts of debt while speculators look to turn a profit. As far as acquisitions are concerned I'm sure they have their eye on the markets while simultaneously being involved with the xspring projects. That may or may not have strings attached, IDK. 

If they are behaving anything like tesla (acquisition of a capacitor manufacture, scouting for battery tech start-ups) then they are looking for companies to acquire, but they must find a really good fit. Tesla was an example I had in mind. I think people should also remember that acquisitions are expensive and it means that then there are two companies to run once that acquisition occurs. It has to be a near perfect match.

MGI alone would be really expensive. Ripple has cash, but MGI would be hundreds of millions. MGI may very well go bankrupt in the end. At the same time I can still buy stuff online from RadioShack and SEARS.

Since Ripple's focus is money transfers that limits prospects. So it seems things like mobile money transfer apps are cheap. Maybe once the younger generation moves into a more financially secure positions then paying with telephones and online will be commonplace.

Things like xrp could allow all of us to buy directly from a manufacturer from anywhere in the world. Hopefully regualtions will catch up and taxes of imported goods will be less complicated to purchase for the consumer.

Well I think the Ripple partnership initially spiked it to $6 but it's really been around $3 for the last year on average if you look at the chart. I saw value in the MGI relationship in relation to the hypothetical US government role with Ripple in that the US blocked China from buying MGI. So I thought the US government was protecting something there and ushering Ripple in. 

Xpring has been a pretty serious investment strategy, totaling what $500M outbound at this point? Ripple could've bought the corporate FX companies that Fleetcor purchased the last couple years for that money. 

I think P2P money transfer is way down the line basis this top down strategy. They have still a long way to go with securing B2B FX/cross-border invoice settlement.

[aavkk]

22 hours ago, thinlyspread said:

I am a bit weird on this one I know, but, I reall think they should go on the hunt for Nexo. Huge book of loans. 

Ripple is currently building their own loan products in house.  It’s something that Chris Larsen has extensive experience with.  Look for these products to be rolled out early next year.

[thinlyspread]

6 minutes ago, aavkk said:

Ripple is currently building their own loan products in house.  It’s something that Chris Larsen has extensive experience with.  Look for these products to be rolled out early next year.

Interesting – what's your source for this?