Twitter brings on JPMorgan as adviser alongside Goldman

According to persons familiar with the situation, Twitter Inc. has hired a second investment bank, JPMorgan Chase & Co., to assist it in responding to Elon Musk’s hostile bid.

According to the people, the largest U.S. bank recently began working to assist Twitter in conversations with potential owners. They asked not to be identified since the topic is private. Twitter and JPMorgan representatives declined to comment.

According to one of the individuals familiar with the situation, in addition to Musk’s offer, Twitter has received acquisition interest from other parties, including Thoma Bravo, a technology-focused private equity firm. On Thursday, Thoma Bravo’s interest was reported by the New York Post. Thoma Bravo’s publicist declined to comment on the matter.

With JPMorgan, Twitter is partnering with a bank that hasn’t shied away from tussling with Musk. Several lawsuits have been filed against JPMorgan and Musk’s electric vehicle startup, Tesla Inc.

They’re suing each other overstock transactions, some of which are tied to Musk’s tweet in 2018 claiming to have secured funds to take Tesla private, an effort that was abandoned weeks later. Next week, the two parties are expected to appear in court.

JPMorgan Chase & Co. has joined Goldman Sachs Group Inc. in assisting Musk in his bid to buy Twitter. Musk has enlisted the help of Morgan Stanley.

Don’t Get Left Behind JPMorgan’s participation is also a setback for boutique investment banks, which have been battling bulge brackets for market dominance.

According to data obtained by Bloomberg, when Twitter was battling activist investor Elliott Investment Management in 2020, the business received advice from boutique advisory firm Allen & Co.

This time, no boutique investment bank appears to be participating, despite the fact that as transactions progress, corporations prefer to hire additional consultants.

Due to its extensive relationship with Twitter, Goldman, which has been close to Musk in the past, including being the lead bank in the unsuccessful bid to take Tesla private in 2018, was uncomfortable about advising the billionaire.

On Friday, Twitter enacted a so-called poison pill as a safeguard against Musk acquiring more of the firm. The move could give the board more time to figure out what to do next.