eToro is paying $50 million in a cash and common stock transaction, as reported by TechCrunch. The merger would see Gatsby’s core management team; Davis Gaynes President and Co-Founder, Peter Quinn CEO and Co-Founder, Matt Morris the Head of Product and senior team join eToro.
“We’ve seen a seismic shift in the balance of power away from traditional finance institutions towards the retail investor. The internet has democratized financial information and a sea change has taken place, empowering more everyday investors – particularly Gen Z and Millennials – to trade and invest. These retail investors are looking for opportunities to generate returns in today’s bear market.”, says eToro CEO and Co-Founder Yoni Assia.
“Against this backdrop, we are incredibly excited to welcome the Gatsby team to the eToro family. We have a shared mission of empowering investors through simple, transparent investing tools. Scaling our US business is a strategic focus for eToro and through Gatsby we can provide US users with access to a safe and simple way to trade options, which we know are particularly attractive in challenging markets.”
Founded in 2018 by co-CEOs Jeff Myers and Ryan Belanger-Saleh, Gatsby is a commission-free options and stock trading app targeting a younger market.
“We came up with the idea of Gatsby while we were in London. We were convinced there was an opportunity for us to demystify markets and provide an options platform focused on the needs of a new generation of US traders. We’ve always been huge fans of the social aspects of eToro. They’ve really been the pioneers of social investing and we’ve always thought of them as the cool older sibling we’d love to hang with! In terms of product and culture, it’s a great fit and we’re really excited about the next chapter in our shared future.”, adds Belanger-Saleh.
According to Yoni Assia, with the merger, eToro will be able to offer US investors multi-asset tools and “with access to a safe and simple way to trade options”, while expanding its social investing platform.
The acquisition is still subject to customary closing conditions, such as regulatory approvals. The Financial Industry Regulatory Authority has already approved eToro’s acquisition, according to reports.
