The deal marks the broker’s second acquisition since September 2022, the latest of which was eToro’s purchase of no-fee trading app Gatsby to expand its business in the US. The takeover, which was around USD 50 million in cash and common stock, was initially filed for approval by the US Financial Industry Regulatory Authority (Finra) back in December 2021.
Gaining more insights into investment protfolios
Bullsheet’s portfolio manager is designed exclusively for eToro users who want insightful information about their portfolio without all the manual work of updating their stakes. The platform was launched in 2021 and its founders originally joined eToro’s Popular Investor programme.
Based on their experience, they innovated portfolio management tools to help eToro users analyse the diversification of their portfolio and visualise assets by sector, type, yield, and much more. The service enables them to check stocks during extended trading hours, study P/E, P/S and other ratios to compare their financial data.
eToro’s officials stated that the Bullsheet story is a great example of the talent and passion within its global community. They believe there is a power in shared knowledge and that by transforming investing into a group effort people yield better results and become more successful together. Bulsheet’s founders created the company to share the tools they developed as eToro users with other consumers.
Details of the deal
As part of the deal, eToro will integrate Bullsheet’s offering into its platform and its two founders have joined eToro’s product development team. They will support eToro’s goal of integrating user feedback and requests into its product offering.
The recent acquisition comes a few months after eToro laid off 100 employees, half of them in Israel. This number represents around 6% of the company’s total workforce.
At the same time as announcing the cuts, eToro abandoned its plans to go public at an eye-catching USD 10 billion valuation after it canceled its SPAC deal with Betsy Cohen-backed blank-check firm. Also, the social investment work is reportedly in talks to close a private funding round of roughly USD 1 billion, but at only USD 5-6 billion valuation.