Elon Musk is in talks with private equity firm Thoma Bravo to partner in a potential takeover bid for Twitter, two sources close to the situation said.
Thoma Bravo, a Chicago-based buyout firm focused on the tech sector, could be key to Musk moving forward with a firm offer for Twitter, sources said. That’s largely because Musk — despite the fact that he’s the richest person in the world, according to Forbes with an estimated net worth of $270 billion — doesn’t want to foot the entire bill for the acquisition, the sources added.
“What it would take Musk to raise the equity — like selling his Tesla stock — is something he probably doesn’t want to do,” a source briefed on the situation told The Post.
For similar reasons, Thoma Bravo — a major name in private equity whose previous investments have included software security giant McAfee — would likely do a Twitter buyout with Musk, or not at all, the sources said.
Nonetheless, Thoma Bravo executives are divided on the idea – largely because of Musk’s erratic behavior and penchant for controversial politics, the sources say.
The Post broke the news last week that, like Musk, Thoma Bravo is interested in buying Twitter. Now, Thoma Bravo would likely only move forward with Musk, or not at all, sources said.
As The Post exclusively reports, Musk wants to spend $10-15 billion to buy Twitter and needs partners to raise the rest of the $21 billion. AFP via Getty Images
Musk announced Thursday morning that he had provided $21 billion in cash from himself and other co-investors to launch a $46.5 billion bid for Twitter. Musk said he also arranged $25.5 billion in committed debt in the form of loans against Twitter itself and his personal stock through Morgan Stanley.
With his filing Thursday, Musk could signal Thoma Bravo that he has pledged funding to convince him to join forces and make a binding proposal, insiders speculated Thursday.
A source close to the situation said Musk has had little trouble attracting interest from co-investors who have participated in funding rounds for his other ventures, including Space X. Despite this, Musk did not name any of his co-investors in Thursday’s filing -Investors. and that has put insiders’ focus on Thoma Bravo.
“Thoma is important to Musk,” a source said.
So far, Twitter has neither accepted nor rejected Musk’s offer. SOPA Images/Light Rocket via Gett
In the meantime, “executives at Thoma Bravo see an opportunity to save a lot of money,” a source said, explaining why the company remains interested in Twitter.
Still, Thoma Bravo would likely only buy Twitter on a friendly basis and isn’t comfortable with the hostile takeover bid, which Musk again threatened in Thursday’s SEC filing, the source said. Meanwhile, Musk cited the 1956 Elvis Presley hit “Love Me Tender” in a tweet last week and another this week that referenced F. Scott Fitzgerald’s novel “Tender Is the Night.”
While Musk has signaled the possibility of a hostile takeover bid, sources point out that such a move would still require negotiations with the board, which has issued a so-called “poison pill” preventing it from acquiring more than 15% of its shares .
Without discussions with the board, Musk could still make a takeover bid conditional on Twitter removing the poison pill — a move that could allow him to garner shareholder support and pressure Twitter without triggering the pill .
Thoma Bravo executives “see an opportunity to save a lot of money,” a source said, explaining why the company is still interested in Twitter.Anadolu Agency through Getty Images
As The Post exclusively reported this week, Musk wants to spend $10 billion to $15 billion to buy Twitter and needs partners to help raise the remainder of the $21 billion he said in Thursday’s filing for equity funding for the indicated purchase by Twitter.
So far, Twitter has neither accepted nor rejected Musk’s offer.
A Twitter spokesman said Thursday: “We have received Elon Musk’s updated non-binding proposal, which includes additional information on the original proposal and new information on potential funding. As previously announced and communicated directly to Mr. Musk, the Board of Directors is committed to conducting a careful, comprehensive and deliberate review to determine what course of action it believes is in the best interests of the company and all Twitter shareholders.”