Source: Investing.com UK
Reports show how more private equity firms are visibly expressing interests in taking part in a deal for Twitter Inc. On Monday, April 18, many familiar with the situation disclosed the news. These sources wished to remain anonymous, so they declined the revelation of their identity, Moreover, they did not even name any of the particularly firms that expressed interests in such a deal.
The interest reportedly kicked off following Thoma Bravo contacting Twitter regarding a possible buyout. Thoma Bravo is a technology-focused private equity firm that wanted to challenge Elon Musk’s offer of $43 billion. They contacted the social media platform last week in order to discuss a buyout that could possibly help them.
Additionally, Apollo Global Management Inc is looking at ways they can provide financing to any particular deal. Moreover, the concerned sources specified that they are open to working with the Tesla Chief Executive or any other such bidder. The sources specified how Apollo’s participation would be through their credit investment platform, instead of their private equity business. As of now, neither Twitter nor Apollo have given any comment on the situation.
Why are these firms expressing interests in Twitter deals?
Musk and Twitter have been making headlines in the tech world for a while now. Musk acquired 9.2% of Twitter stake last month, making him the largest shareholder before Vanguard replaced him. He was even supposed to join the company’s board of directors, but later refused for reasons not yet specified. Soon, he made a bid to acquire 100% stake of the company in a buyout offer of $43 billion. He made the offer to board chairman Bret Taylor in a letter, offering to buy the entire company for $54.20 per share. The billionaire CEO proposed a series of changes he would make if he actually acquires Twitter.
In order to guard itself from the acquisition offer of the second-largest shareholder, Twitter adopted a “poison pill.” This is also known as the shareholder rights plan that gives them the opportunity to buy additional stock at a lesser price. This would contribute towards diluting the holdings of a new, hostile investor, in this case Musk, making it difficult for him to go ahead with his plan.
Additionally, Thoma Bravo had previously informed Twitter about its plans. According to reports, they are exploring the possibility of coming up with a suitable bid.
