Private equity giant Thoma Bravo is working on a possible bid for Twitter, a source close to the situation told The Post – and is setting up what could be a rival to Elon Musk’s bid for the social giant.
“They’re making a push,” the source said of the private equity firm, which already owns tech names like McAfee and Landesk.
It’s not clear what Thoma Bravo might offer or when it would make its offer available to the Twitter board. The firm has an internal team working on the potential transaction, a source familiar with the matter told The Post.
“They’re not far off,” said a second source close to the situation when asked by The Post if Thoma Bravo was working on a potential offer for Twitter.
Thoma Bravo could be a white knight for the company and CEO Parag Argawal, one of the sources said.
Musk posted a non-binding offer of $54.20 per share to Twitter on Thursday, telling the company it was his best and final offer. If the board doesn’t accept his offer, “I’ll have to reconsider my position as a shareholder,” Musk said. Later Thursday, he said he wasn’t sure if he could acquire Twitter.
The Tesla founder and richest man in the world announced earlier this month that he owns 9.2% of shares in Twitter.
If Twitter declines Musk’s offer, its share price could collapse unless it had another option to disclose at the time of a potential decline. This is where a so-called white knight would come into play.
That’s why Thoma Bravo needs to act quickly – if it chooses to move forward – to show the Twitter board it has a potentially friendlier alternative, sources told The Post.
On his website, Thoma Bravo says, “Our private equity investment vehicles share the same investment philosophy – partnering with and supporting existing management teams to deliver solid operating results and drive innovation.”
Musk, on the other hand, has sharply criticized the Twitter management team.
Thoma Bravo typically invests in business-to-business software companies rather than direct-to-consumer companies such as B. Twitter. In 2020, the San Francisco and Chicago-based firm announced the closing of a $17.8 billion buyout fund and claims to have $103 billion in assets under management across its various vehicles.
Meanwhile, Twitter is generating significant cash flow and isn’t a bad leveraged buyout candidate, one of the sources said. Thoma Bravo sees potential for the company in terms of controlling costs and increasing profit margins, the source said.
Thoma Bravo reportedly reached a $10.7 billion buyout agreement last month to acquire publicly traded Anaplan, a company that makes software modeling for various business outcomes.
There has been strong demand from investors in the Thoma Bravo fund to co-invest in the deal outside of the fund, and many may also co-invest in a much larger Twitter deal, the source said.
https://nypost.com/2022/04/14/elon-musk-could-have-competition-thoma-bravo-considers-bid-for-twitter/ Thoma Bravo considers offer for Twitter