Twitter on Friday adopted a ‘poison pill’ to limit Elon Musk’s ability to raise shares on social media platforms, as a buyout firm appeared to challenge its $ 43 billion (approximately Rs 3,28,250 crore) bid for the company.
Thomas Bravo, a technology-centric private equity firm with assets of পর্যন্ত 103 billion (approximately Rs 7,86,250 crore) under management at the end of December, told Twitter that it was exploring the possibility of a bid.
It is unknown at this time what he will do after leaving the post. It is unknown at this time what he will do after leaving the post.
A spokeswoman for Thomas Bravo declined to comment when Twitter representatives did not immediately respond to a request for comment. The New York Post reported Thursday that Toma Bravo is considering a bid for Twitter.
Twitter said Friday it had taken a poison pill that would dilute shareholders in more than 15 percent of the company by selling more shares at a discount to other shareholders. Officially known as the Shareholder Right Plan, the poison pill will last for 364 days.
The move would not prevent Mask from taking his offer directly to Twitter shareholders by launching a tender offer. Although the poison pill will prevent most Twitter shareholders from selling their shares, the tender offer will allow them to register their support or disapproval of the mask proposal.
Dan Ives, an analyst at WadeBush, tweeted on Friday that “this is a predictable defense measure for the collapse of the board that will not be viewed positively by shareholders due to potential downside and acquisition-friendly move.”
Thoma Bravo’s interest has led more private equity firms to compete for Twitter. According to data provider Pricin, the global private equity industry has about $ 1.8 trillion (approximately Rs. 1,37,40,310 crore) sitting on dry powder. Unlike major technology aggregates, most shopping malls will not face distrust restrictions on Twitter acquisitions.
It is possible that a private equity firm would raise Mask’s bid by partnering with him instead of challenging him. Musk’s criticism of the reliance on advertising for most of Twitter’s revenue, however, has alarmed some private equity firms about teaming up with it, industry sources said. This is because a strong cash flow makes financing a leveraged purchase much easier.
Silver Lake, a private equity firm with ব্যবস্থা 90 billion (approximately Rs 6,87,010 crore) assets in management, would be a natural partner for Musk as it offered to finance its $ 72-billion bid (approximately Rs 5,49,610). Crore) for Tesla four years ago, who later abandoned the mask. Egan Durban, co-chief executive of Silver Lake, also sits on the Twitter board.
But Durban did not back down on Thursday when the Twitter board first met to discuss the mask’s offer, with people familiar with the matter saying Silver Lake did not want to team up with the mask or thus make a bid of its own. Away
It is possible that Silver Lake would choose to be involved as a buyer. A Silver Lake spokesman did not immediately respond to a request for comment Friday.
‘Best and Final Offer’
Twitter’s balance sheet has $ 6 billion (approximately Rs 45,800 crore) in cash and its annual cash flow is close to $ 700 million (approximately Rs 5,340 crore), giving banks some relief in considering whether to lend for a deal. Still, a leveraged buyout for Twitter could be the biggest of all time, with potentially several buyout firms and other major institutional investors teaming up.
With a net worth of 5 265 billion (approximately Rs 20,22,860 crore) according to Forbes, Mask is the richest man in the world. But he has drawn a line about how much he is willing to give. He told Twitter on Wednesday that his $ 54.20-share (approximately Rs 4,140) cash bid for the company was his “best and final offer”, and that he would reconsider his position as a Twitter shareholder if it was rejected. Musk owns more than 9 percent of Twitter, making him the second largest shareholder after mutual fund giant Vanguard.
Musk tweeted on Thursday that Twitter shareholders should make a statement about his offer and posted a poll on Twitter where most users agreed with him. Twitter’s board is still evaluating Mask’s offer, and once approved, it will be put to a vote by the company’s shareholders. Twitter shares fell on Thursday, indicating that most investors expected the company’s board to reject Mask’s bid as inadequate and thin in its financing details.
Twitter’s board is expected to take a few more days to evaluate Mask’s bid and draft a response, sources familiar with the matter said. A weekend result is unlikely, the source added.
Goldman Sachs Group is advising the Twitter board on its discussions. Bloomberg News reported Friday that the board has tapped JPMorgan Chase Co. as its second financial adviser.
Thomson Reuters 2022