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Elon Musk and Thoma Bravo in talks for potential Twitter acquisition: report

(Credit: Ryan Lash/TED)

Tesla CEO Elon Musk and Chicago-based buyout firm Thoma Bravo are reportedly in talks about a potential partnership that could help push the acquisition of Twitter. 

Musk caught headlines last week when he announced an offer to acquire Twitter for $54.20 per share, a 54% premium over the social media company’s closing price when he started buying shares and a 38% premium over the day before his holdings were disclosed. Twitter’s Board of Directors has not rejected or accepted Musk’s offer, but they did adopt a “poison pill” strategy that would make it more difficult and costly for the CEO to take over the company. 

Fortunately, Musk seems to be gathering a lot of support for his takeover bid. As per two sources reportedly familiar with the matter, Thoma Bravo could be the key that allows the Tesla and SpaceX CEO to move forward with a binding offer for Twitter. Interestingly enough, the sources informed the New York Post that Thoma Bravo would be open to pursuing a Twitter buyout with Elon Musk only. 

While Musk currently stands as the world’s wealthiest person by net worth, the CEO reportedly is looking to avoid covering the entire bill for Twitter’s acquisition on his own. This is understandable, especially if acquiring Twitter would result in Musk having to sell some of his TSLA holdings. “What it would take Musk to raise the equity — like selling his Tesla shares — is something he probably doesn’t want to do,” the Post‘s sources noted. 

During an appearance at TED 2022, Musk stated that he has a “Plan B” just in case his initial Twitter acquisition plan proves unsuccessful. This “Plan B” seems to have been outlined in a recent 13D filing, which indicated that the CEO had received commitments for $46.5 billion to help finance a potential Twitter buyout. It also revealed that Musk is exploring the idea of a tender offer to purchase some or all of Twitter stock directly from shareholders. 

As per the Post‘s sources, Musk has reportedly not had any difficulty getting interest from potential investors and backers for his Twitter acquisition attempt. Some of these investors have reportedly participated in funding rounds for Musk’s other companies like SpaceX, which should make them pretty familiar with the CEO’s ambitious but likely profitable plans. 

*Quotes courtesy of the New York Post.

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Elon Musk and Thoma Bravo in talks for potential Twitter acquisition: report
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