After the crypto sphere got afloat with speculations a few days ago that Ripple, a California-based virtual asset start-up focusing primarily on the banking sector, has acquired the key United States-based money transfer company MoneyGram, both companies allegedly declined to comment. Both the companies have allegedly stated that they do not comment on conjecture and rumors as a rule. Nonetheless, they added that they would let the public now, should there be any official news.
It is to be noted that the speculations got lit with a post on Twitter by a trader named CryptHawk. While referring to a “trusted source”, CryptHawk asserts that Ripple has without a doubt acquired MoneyGram. As per the unidentified trader, the negotiations for the aforementioned acquisition were continuing since November 2018 and that the deal has lastly been put into effect last to last Monday.
It is to be noted that MoneyGram, which was founded in 1940, was on sale lately as the company is trying to deal with declining revenues and reorganize its debt pile, which purportedly totaled USD 902.8 million as of the end of September 2018 and comes due next year.
As per Reuters, around a billion dollar deal with Ant Financial fell through in January, 2018. The development took place after a United States government panel discarded it due to national security concerns. It is to be noted that the company would be sold for USD 18 per share, or more than USD 1 billion, in a deal with Ant Financial. Now, its share price in the market stands at USD 1.45, while its market capitalization is USD 81.77 million, matched up to the average market capitalization of USD 501.74 million in the last 5 years. Notably, Moneygram has been working on meeting the terms of their agreements, consummating their commitments, and paying off the debts. However, Reuters’ source mentioned previously this year that a sale of the company is not sure.
Image Source: Twitter/Moneygram