XRP News: Crypto giants Ripple and Circle are again in the spotlight

This article examines the likelihood of Ripple's $20 billion bid for Circle and its potential impact on the XRP ecosystem.

Crypto giants Ripple and Circle are again in the spotlight, with rumors swirling about a massive $20 billion bid from Ripple to acquire stablecoin issuer Circle.

After a previous $5 billion deal fell through, הפרסומים במגוון מדיה, כולל The Block, now report that Ripple is aiming to close the deal with a significantly increased offer.

However, experts are divided on whether Ripple will go all out to acquire Circle. Some, like industry expert Dom Kwok, consider the $20 billion deal too unrealistic.

This article delves into the likelihood of Ripple’s bid and its potential impact on the XRP ecosystem.

Will Ripple Buy Circle for $20B? Experts Weigh In

In a recent tweet, Scott Melker (The Wolf Of All Streets) discussed the possibility of Brad Garlinghouse considering a substantial bid increase to acquire Circle.

Despite this, Melker expressed skepticism, adding that even with an increased offer, it’s unclear if Circle will accept.

Many in the crypto community have also raised questions about the mentioned $20 billion deal.

According to Kwok, the final platform offer for Circle will likely fall within the range of $6 billion to $6.5 billion.

This estimation is based on the typical acquisition premium, which is the amount a buyer pays above the target company’s valuation to incentivize the sale. The premium usually ranges from 20% to 30%.

Assuming that Circle’s valuation is around $5 billion, Kwok said that a 20% premium would put the offer at $6 billion, while a 30% premium would put it at $6.5 billion.

With this detailed analysis, Kwok dismissed the rumors surrounding Ripple’s potential purchase of the USDT issuer for a whopping $20 billion.

Meanwhile, amid these speculations, XRP lawyer John Deaton has brought up an interesting angle regarding the deal.

The XRP attorney underscored the possibility of a “bidding war” between Ripple and Coinbase, a top crypto exchange, which already holds a minority stake in the stablecoin issuer.

However, if Ripple finally acquires Circle, one of the largest stablecoin issuers, it could be a game-changer for the former.