Jaime Rogozinski, 39, who created Reddit ‘s WallStreetBets has reportedly sold the rights to his life story to Brett Ratner for a payment in the low six figures
The man who created
Jaime Rogozinski, 39, said he started the WallStreetBets page as an alternative to forums where he was told his investment ideas were ‘too risky’. The site grew quickly after 2019 when Fidelity Investments and Charles Schwab Corp. eliminated trading commissions.
The group now has more than 8 million investors who exchange tips and boast about beating ‘the system’. Some analysts have described the situation as a ‘nerds vs Wall Street’ battle.
As a result of the battle, GameStop surged 18 per cent last Monday, another 115 per cent last Tuesday and had leapt 135 per cent last Wednesday. That followed a stunning 50 per cent jump on Friday.
Now, Rogozinski’s story will first be told in the form of a movie, RatPac producers told
Then, the producers said, his story will move on to podcasts and other mediums.
RatPac says they want to dramatize the story of his role in the WallStreetBets saga that has sent shares of struggling companies like GameStop soaring while also dealing crippling losses to hedge funds.
Rogozinski, who has begun talks with writers who RatPac is considering for the film, told the Journal: ‘Maybe I’ll get to go on the red carpet.’
Scroll down for video
Rogozinski’s story will first be told in the form of a movie, RatPac producers said. Ratner and his company are known for backing films like Wonder Woman. Ratner (pictured) also wants to bring the story to podcasts and other mediums
WallStreetBets is a group of three million amateur investors who exchange tips and boast about beating ‘the system’
According to the Journal, others have also joined in on the race to bring the saga to the screen, with Netflix in talks with screenwriter Mark Boal, and Metro-Goldwyn-Mayer Inc acquiring a book proposal written by Ben Mezrich.
But Ratner, who lost a $450million deal with Warner Bros after multiple women accused him of sexual harassment and assault in 2017, says his company is self-financing the project and because of his access to Rogozinski he’s not worried about the competition.
‘This story is such a human story of power and uprising, capitalism and socialism, and so much more,’ Ratner, who has denied the allegations, told the Journal.
In terms of who will play Rogozinski on screen, the consultant said he doesn’t yet have an opinion on which actor he’d prefer to portray him.
As part of the six-figure deal, Ratner and his crew will have exclusive access to Rogozinski, as well as diaries, photos and anything else that can help tell the story.
Rogozinski told the newspaper: ‘I’m laying it all out on the table. There are going to be some things that are extremely shocking, things that people don’t know about me,’ he said.
With Rogozinski’s deal, the producers also have the right to adapt his story into podcast, documentary or a TV series.
Rogozinski, who loves with his physician wife and their three-year-old twins, spoke to
Rogozinski created the Reddit forum which spearheaded the campaign to drive up GameStop shares in a battle against hedge fund short-sellers. He lives with his wife, pictured, and their two young children in Mexico City
‘You see this train wreck happening in real time,’ he said.
Members of his Reddit forum spearheaded the campaign to drive up GameStop shares in a battle against hedge fund short-sellers.
When Rogozinski started the group, one of his early subscribers was ‘Pharma Bro’ Martin Shkreli, who was sentenced to seven years in federal prison in March 2018 for securities fraud for lying to investors in his hedge funds and manipulating stock shared for his company, Retrophin Inc.
Rogozinski said the group has ‘organized where they collectively have a seat at the poker table, which was previously invite-only’.
‘You can’t ignore them anymore,’ he added.
He said the movement ‘is able to do what Occupy Wall Street was never able to do but on a completely different angle’.
‘Occupy Wall Street was fed up with this saying ‘It’s a game we can’t play, you’re forgetting the little guy.’ Now the little guy figured out a different way around it,’ he said.
As the happenings of last week played out, the WallStreetBets forum had restricted access to those outside its 3.6 million subscribers for a few hours Wednesday evening, but was again visible to the public early Thursday.
Followers had been on a GameStop buying spree, which not only pushes up the shares but puts pressure on short sellers to make purchases to ‘cover’ their bets to avoid steeper losses.
This is known on Wall Street as a ‘short squeeze’ and can result in a dizzying rally by forcing short sellers into becoming buyers.
The extreme volatility of GameStop’s surge in shares raised concerns about manipulation, which could lead to an investigation by stock market regulators, and has even drawn attention from the White House.
On January 27, the Securities and Exchange Commission said it was monitoring the activity.
GameStop shares plunged last Thursday after trading app Robinhood restricted purchases.
By noon, a federal class action lawsuit had been filed against the trading app in the Southern District of New York.
Robinhood also halted buying for shares of theater chain AMC, BlackBerry, retailers Express and Bed Bath & Beyond, headphone maker Koss, swimwear line Naked Brand Group, and Nokia. All were down by double digits in midday trading.
GOP Senator Ted Cruz and Democrat squad member Alexandra Ocasio-Cortez have both called for investigations and criticized Robinhood for shutting down trades while hedge funds are still free to buy and sell stocks as they please.
The war began when famed hedge fund short seller Andrew Left of Citron Capital bet against GameStop and was met with a barrage of retail traders betting the other way. He said last Wednesday he had abandoned the bet.
The Redditers have taken advantage of a process called ‘short selling’, which effectively reverses the way the stock market traditionally works.
Instead of buying a stock in the hope company does well and the price goes up, then selling for a profit, shorting involves betting against a stock in the hope the value goes down, and then pocketing a share of the difference.
The catch is that, if the investors are wrong and the price actually goes up, they will end up losing potentially huge sums of money, depending on how far the price rises.
Rogozinski (pictured with his wife) said he started the page as an alternative to forums where he was told ‘it’s too risky’
How does ‘shorting’ a stock actually work?
Stocks typically benefit investors if the price goes up – they buy stock, the price increases if the company does well, then they sell it for a profit.
But there is a way to reverse that process. Known as ‘shorting’, it involves placing a bet against a company that means a trader makes money when the value goes down.
To do this, a trader borrows stock off a broker, usually for a fee, which they immediately sell – but with a clause saying that they have to buy back that stock by a certain date and return it to the broker.
If the value of the stock goes down, then the trader buys it back for less than the sale price, returning the stock to the broker along with the fee and keeping the rest of the money for themselves.
But, if the stock price rises, they will be forced to buy for more than the sale price, making a loss in the process.
While this sometimes happens by accident, other traders can deliberately boost the price in a process known as a ‘short squeeze’ – which is what Reddit did.
This benefits the ‘squeezers’ because they know that at some point, the short-sellers will be legally obliged to buy back their borrowed stocks, driving the price up further.
It also inflicts heavy losses on the short-sellers, since the amount they lose is tied to the amount the stock rises – they are effectively ‘punished’ for betting against the company, which is what some Redditors appear to be interested in.