Ironic is the only word to describe Wealthfront`s fate

Alanis Morissette in the video clip of Ìronic`

Robo deals since 2019

The $1.4 Billion deal value was agreed in January 2022 based on 2021 annual revenues of roughly $67 million, AUM and clients $27 Billion and 470,000 US clients. UBS and the market were well aware at the time that Schwab paid roughly 4.3 times for TD Ameritrade’s revenue and Morgan Stanley paid 4.6 times for E-Trade’s revenue.

  • Announced in 2019 and closed in mid 2020 — Schwab acquisition of TD Ameritrade all in stock deal of $26 billion
  • Announced in early 2020 and closed in Fall 2020 — Morgan Stanley acquisition of ETrade $13B

Details of the Wealthfront deal and their business

Actually, the headlines quoting $1.4B for the Wealthfront deal, cover up the fact that cash agreed upon closing was close to $700 million! This makes the deal look more reasonable and much closer to the Personal Capital deal of c. 10 times revenues. The remaining balloon payments (according to RIAbiz) were contingent on meeting certain performance metrics.

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Efi Pylarinou

Efi Pylarinou

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№1 #Finance Global Woman Influencer by Refinitiv 2020 & 2019. Top Global #Fintech Influencer, Futurist, #AI, #Blockchain +: 30yrs FINANCE — https://linktr.ee/Ef