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Ripple is acquiring MoneyGram?

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2 hours ago, manateehunter said:

Either he knows somethings happening, or he's hurting his credibility.

In a following tweet he said he heard about the rumor from Twitter.

I’m not sure what to make of it....why bother commenting unless he’s heard something himself and not from random tweets

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2 minutes ago, KarlHungus said:

In a following tweet he said he heard about the rumor from Twitter.

I’m not sure what to make of it....why bother commenting unless he’s heard something himself and not from random tweets

He heard it from the cryptohawk dude, who is not a credible source and is spamming everyone who replies to Mike. So unless he actually has a source that's worth a **** this tweet seems really damaging to his credibility, which sucks because he's probably the biggest public investor in XRP right now.

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8 minutes ago, manateehunter said:

He heard it from the cryptohawk dude, who is not a credible source and is spamming everyone who replies to Mike. So unless he actually has a source that's worth a **** this tweet seems really damaging to his credibility, which sucks because he's probably the biggest public investor in XRP right now.

If he heard it from CH we can pretty much toss out his mentioning it and yea, he’s hurting his own credibility.  

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7 hours ago, PlanK said:

Is it possible they could buy enough of a stake to be 'influential' without owning it outright?

That would anyway be the only option. Moneygram is a public company, which you can't just buy by signing a deal. They would need to launch an offer to the shareholders, which needs to be approved by a large majority before Ripple can pick up the rest and fully own Moneygram.

As there is no such offer, Ripple has not bought all of Moneygram on Monday. They could have bought parts of Moneygram, by signing deals with the current institutional shareholders. They would need to sign a deal with Thomas H. Lee Partners which has 42% and at least 3 of the smaller institutional shareholders, before they would have 50%+1, a majority to rule the company. 

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The only reason for Ripple to want to make this deal is to drive up XRP usage. Ripple has the muscle, expertise and network to become a virtual bank or money transfer company. However, it won't be good as it will be relaly awkward to compete with their partners. 

Ripple is still too small compared to their partners who are big banks or big FI. Amazon has done similar things to compete with their partners, they have their own Amazon brand for quite a lot of things now. However, they only start to do it when their partners can't live without them. They are not worry that their partners will leave because of the competition. Can Ripple do the same thing? I highly doubt it.

 

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If the rumor was true and now this public attention kills the deal will all you people please stop following and amplifying this guy?
If you actually care about the success of a company and reveal something like this you're either a narcissist or a moron or both.
 

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Posted (edited)
On 6/7/2019 at 8:33 PM, OzAlphaWolf said:

Not going to comment on the MG rumour itself but I had the initial reaction others had. What are Ripple thinking by going into competition with their customers? On reflection, I thought that it's not so much the MG remittance business that would be valuable but the MG infrastructure. MG have something like 380k agents in about 200 countries. Now imagine that last mile network being integrated into Ripple Net. A Filipino worker in Saudi with a SABB bank account could wire money home to their family even if SABB had no relationship with a bank in the Philippines. The family could collect the money at any MG agent. Now I'm not claiming this is the case but given some thought there are ways that such an acquisition could benefit everyone, not just Ripple.

Others have similar thoughts on different aspects of the infrastructure but it's not for me to comment on that. But if this is true, there is definitely more to it than a first glance perspective would show.

Ant Financial didn't offer $1.2b because they thought it wasn't worth anything;  their offer would have covered the ~$1b in debt and then doubled or tripled the current market cap of MGI (~$80mm)...  Their offer got shut down/out because they're a Chinese entity.  But their insight that MGI was like "200 countries worth of rails, and licensing, and regulatory clearance, and reach - all in one box" was pretty spot on.  I'd imagine their plan was to modernize it and then rent access to the rails;  that's not crazy.

The billion of debt on their books is a big deal, so, that'd require serious structural finance creativity and a lot of work, but I've seen crazier M&A ideas - and not just in movies:

We'll see...  The one thing I know for sure is that MoneyGram is for sale - they said it, themselves.  So the rest of it is deal structure, right buyer... and... the right price:

51sBxi2DlhL._SL500_.jpg

https://www.bizjournals.com/dallas/news/2019/03/28/moneygram-ceo-sale-on-the-table-once-debt-deal.html

"A full-on sale is always in the cards," said MoneyGram International Inc. CEO Alex Holmes in an interview with the Dallas Business Journal.

Edited by NightJanitor
Funny Pictures and Links

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On 6/5/2019 at 3:13 PM, mistatee2000 said:

Think logically - why would Ripple go for this kind of vertical integration when it is gaining traction with lots of FI's.Think of the conflicts. 

I doubt this very much but will wait and see with no real confidence of it's veracity

No idea if this is true or not. So far there seems to be just one source (crypthawk) but you ask why would Ripple go for this? Well one reason might be that it guarantees a certain level of liquidity because if they own Moneygram they can use xrp at every possible opportunity and this might then allow them to crack customers who are waiting for the liquidity to increase before signing off. 

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Keep in mind MoneyGram charges a lot to transfer. If Ripple used Xrp it will be almost next to nothing for customers to transfer money.  

 

 

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20 minutes ago, tony71 said:

Keep in mind MoneyGram charges a lot to transfer. If Ripple used Xrp it will be almost next to nothing for customers to transfer money.  

 

 

and they would immediately start undercutting WU etc who would then need to sign up to use xrp in order to compete.

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2 minutes ago, swift_post said:

and they would immediately start undercutting WU etc who would then need to sign up to use xrp in order to compete.

This would annihilate retail FX. I  worked for a retail shop for a few years in FX; Ripple purchasing MG would close up 80% of the shops within a year. Those left would be using XRP post consolidation.

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