The news: The Nasdaq-listed trading app bought investor communication platform Say Technologies for $140 million, per its press release.
Why buy Say Technologies? Its digital platform facilitates communication between shareholders and the companies they’ve invested in.
Say Technologies’ Q&A solution lets investors participate in events like earnings calls so they can ask questions to the directors of the companies they hold shares in. It also simplifies proxy voting, which usually relies on a complex chain of financial intermediaries that pass information between companies and their shareholders and is often difficult to access for individual investors.
What’s in it for Robinhood? The acquisition should boost its average account size and revenues.
Looking ahead: The acquisition heralds the next trend in democratizing retail trading—facilitating shareholder engagement.
Robinhood is something of a trendsetter. It was among the first to do away with commission fees and introduce fractional share trading, which pushed incumbents like TD Ameritrade, E*Trade, Fidelity, and JPMorgan Chase to slash their own fees and bolster their digital capabilities.
With the latest acquisition, Robinhood is further empowering retail investors to participate in the stock market, and this should again act as a catalyst for other market players to similarly improve shareholder communication.