Thoma Bravo considers bid for Twitter

Personal equity huge Thoma Bravo is engaged on a possible bid for Twitter, a provide close to the situation instructed The Publish — establishing what might very properly be a rival to Elon Musk’s supply for the social large.

“They’re making a push,” the provision talked about of the private-equity company that already owns tech names along with McAfee and Landesk.

It’s not clear what Thoma Bravo might bid or when it might present the Twitter board with its bid. The company has an inside group engaged on the potential transaction, the provision accustomed to the matter instructed The Publish.

“You aren’t far off,” a second provide close to the situation talked about when requested by The Publish if Thoma Bravo was engaged on a possible bid for Twitter.

Personal-equity company Thoma Bravo is exploring a doable bid for Twitter, sources instructed The Publish — establishing a possible opponents with Elon Musk.
AFP by means of Getty Images

Thoma Bravo might very properly be a white knight for the company and CEO Parag Argawal, one in every of many sources talked about.

Musk on Thursday made a non-binding supply of $54.20 a share for Twitter, telling the company it was his most interesting and shutting provide. If the board doesn’t accept his provide, “I’d wish to rethink my place as shareholder,” Musk talked about. Later Thursday he talked about he wasn’t constructive if he’d have the flexibility to buy Twitter.

The Tesla founder and world’s richest man earlier this month revealed he owned 9.2% of the shares of Twitter.

Thoma Bravo logo
The private-equity company Thoma Bravo often invests in business-to-business tech corporations, not direct-to-consumer ones like Twitter; nonetheless, it’s considering a suggestion for the social huge, sources instructed The Publish.

Twitter, if it rejects Musk’s provide, may even see its share value collapse till it had one different option to reveal on the time of a possible rejection. That’s the place a so-called white knight would can be found.

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As a result of that, Thoma Bravo desires to maneuver shortly — if it elects to maneuver forward — to level out the Twitter board it has a doubtlessly friendlier numerous, sources instructed The Publish.

On its website, Thoma Bravo says: “Our private equity funding autos make use of the similar funding philosophy — to confederate with and assist present administration teams to help ship steady working outcomes and drive innovation”.

Musk has in distinction sharply criticized the Twitter administration workforce.

Elon Musk told a TED conference in Vancouver, Canada, on Thursday that he wasn't certain he would be able to acquire Twitter.
Elon Musk instructed a TED conference in Vancouver, Canada, on Thursday that he wasn’t certain he would have the flexibility to buy Twitter.
TED

Thoma Bravo invests often in business-to-business software program program companies and by no means companies that cater on to consumers, like Twitter. In 2020, the San Francisco- and Chicago-based company launched the closing of a $17.8 billion buyout fund, and via its fully completely different autos says it has $103 billion in belongings beneath administration.

Within the meantime, Twitter generates essential cash transfer and isn’t a nasty leveraged buyout candidate, one in every of many sources talked about. Thoma Bravo sees potential for the company in relation to controlling costs and widening income margins, the provision talked about.

Thoma Bravo closing month reportedly reached a $10.7 billion buyout settlement to amass listed Anaplan, a company that makes software program program modeling for numerous enterprise outcomes.

There was a large demand from Thoma Bravo fund patrons to co-invest throughout the deal exterior the fund, and many also can co-invest in a quite a bit larger Twitter deal, the provision talked about.